Which is the best investment segment right now: large-cap, mid-cap, or small-cap?

Small-cap and mid-cap funds have considerably outperformed large-cap schemes.

Last 5-year category averages:

Large Cap: 19.9%
Mid Cap: 29.6%
Small Cap: 34.2%

This trend may soon reverse, says @dspmf. A🧵 DSP MF compared how mid-cap and small-cap stocks have performed relative to large-cap stocks over the past 20 years.

What did it find?

The Midcap index is now trading at its highest relative level to Sensex.

The Smallcap index is just shy of its 2005 record high. (See image)

Zomato's stocks have made a remarkable comeback.

Its stock prices have risen by nearly 175% over the past year.

A key reason for this is its transition from a net loss to a net profit company.

How can you find such turnaround stocks? A 🧵 There’s no sure-shot formula to identify turnaround stocks.

But some key signs can certainly help.

In this analysis, we will focus on some of these cues.

We’ll also share a few turnaround stocks to help you research further.

Note: None of these are recommendations.

Since the Budget, Sovereign Gold Bonds (SGBs) have fallen up to 10%.

Reason: Customs duty reduction on gold (from 15% to 6%).

Sentiments changed.

Earlier, investors believed SGB was the way to invest in gold.

Now, many think it’s the worst investment.

Is that really the case? A🧵 First, let’s understand what has happened.

In the recent Budget, the government proposed reducing customs duty on gold from 15% to 6% (effective 24 July 2024).

Indian gold prices are international gold prices converted in rupees plus taxes such as customs duty.

So, when taxes are reduced, domestic gold prices fall.

In India, there are no listed EV automakers (like Tesla).

This will change with Ola Electric’s IPO.

But, like Tesla, can Ola Electric make money for its investors?

The sector is promising.

But the company’s financials aren’t quite impressive.

More details in🧵. Retweet to educate investors. #OLAIPO In this analysis, we will focus on 4 key aspects:

- Company’s business prospects
- The question mark on its financials
- Valuations
- Key details about the IPO

Let’s start.

Budget 2024 has shaken up mutual fund taxation.

- Brought agony to Equity investors.

- Good news for Gold & International Fund investors.

- Confusion for Debt investors.

We will simplify everything here.

Retweet 🧵 to educate investors.

(Note: In the table below, 20% tax is with indexation) 1. EQUITY-ORIENTED FUNDS

These funds invest at least 65% of their corpus in Indian equities.

Examples: Pure equity schemes like Large Cap, Mid Cap, Small Cap, etc.

Plus, there are the likes of Aggressive Hybrid, Equity Saving, & Arbitrage Funds.

Two key changes have happened in them.

Budget 2024 has made the New Regime more attractive.

So, taxpayers are again confused.

Which regime is better now? New or Old?

Well, it all boils down to 2 things:

Total income
Tax deductions & exemptions you can avail

Details in thread 🧵 Background

2 key changes have been proposed in the New Regime.

1. Tax slabs revised (See table)

2. Standard Deduction is up from Rs 50,000 to Rs 75,000.

Meanwhile, there are no new incentives in the Old Regime.

Net net, the New Regime seems more attractive. Check why. 👇

Are SIPs driving markets to new heights?

Monthly SIPs have crossed over Rs 20,000 crore now.

So, we often hear a theory. There’s so much mutual fund money that markets won’t fall.

But is this true? The data show otherwise.

Retweet the thread🧵if you find it insightful. Here’s data from @AxisMutualFund that clearly shows the trend.

Equity supply that has come to the market since April 2023 = Rs 4.84 lakh cr

Net inflows into equity mutual funds since then = Rs 3.07 lakh cr

Evidently, there’s more supply than demand.

One factor index has beaten almost all indices.

It has trumped top-performing indices like the Midcap 150 and Nifty 200 Momentum 30.

We are talking about the Nifty200 Alpha 30 Index.

.@MiraeAsset_IN MF has a new fund in this space.

Let’s look at its details. Retweet🧵to educate more investors. Background

Mirae Asset MF launched a Nifty 200 Alpha 30 ETF eight months back.

After its success, the AMC is now offering a ‘fund of fund (FoF)’ that will invest in the ETF.

So, you won’t need a trading account to invest in the Nifty 200 Alpha 30 fund.

Let’s now analyse the scheme 👇

Sectoral Funds can give stellar returns.

For example, HDFC Defence Fund’s last 1-year return is 140%.

There are many more examples.

But timing your entries and exits in these funds is tough.

Enters @EdelweissMF’s new Business Cycle Fund.

Is it worth considering? A🧵 We will analyse 4 key aspects:

- The basic construct of Business Cycle Funds

- Challenges these funds face

- Unique build of the Edelweiss Business Cycle Fund

- Performance

Finally, we will check if it deserves your attention.

HDFC Bank vs ICICI Bank vs SBI

Which bank’s stocks should you invest in?

To find an answer, we analyzed them on 5 key parameters:

- Loan portfolio
- Growth
- Efficiency
- Quality
- Stock performance & valuations

Details are in the🧵

Retweet this to educate more investors. 1. Loan Portfolio

Loans drive a bank’s income. SBI is a clear leader here.

With a corporate-heavy loan book, SBI can thrive when companies prosper amid a booming economy.

HDFC Bank and ICICI Bank, with significant retail exposure, offer greater stability.

Many new funds (NFOs) have delivered stellar returns.

In the last few years, their success rate has been nearly 50-50.

So, how do you separate the wheat from the chaff while analyzing NFOs?

Don’t worry. We have a framework for you.

Details in 🧵. You can consider investing in a new fund if they have one of these 4 qualities:

- Unique investing strategy
- Launch timing is right
- Managed by a seasoned fund manager
- The fund’s strategy benefits from a smaller AUM size

Let’s understand these points in detail.

Electric vehicles (EVs) aren't a thing of the future anymore.

The theme is taking off worldwide.

It is on the fast lane in India, too.

How can you benefit from it as an investor?

Well, @MiraeAsset_IN has a new ETF to ride this wave.

Can it turbocharge your portfolio? A🧵 Mirae Asset MF has launched a new ETF to mirror the Nifty EV and New Age Automotive index.

In this analysis, we will cover 4 key aspects:

- Unique features of this EV index

- Its Performance

- Factors that can work in this ETF’s favour

- Potential challenges

Let’s start 👇

SBI stock’s 5-year SIP returns: 33.5%.

Nifty 50’s 5-year SIP returns: 19.2%.

Seems impressive, doesn't it?

However, SIP in stocks may not be a great idea for wealth creation.

And it is not similar to SIPs in mutual funds.

Here are 3 key reasons. A 🧵 1. SIP in ‘quality’ stocks may not necessarily give great returns

Stock SIP calculators can lure you with statistics.

When you look at the returns of stocks like SBI, you may think SIPs in ‘quality’ stocks easily beat markets.

But such calculations are loaded with hindsight bias.

You probably don’t even know the existence of these funds.

But Special Situation Funds have delivered impressive returns.

They have outperformed many broad indices. (See image)

Let's dive into these funds and see if they are worth investing in.

A thread.🧵 In this thread, we will cover 3 aspects:

1. Recent impressive performance
2. Investment strategy of special opportunity funds
3. Check how unique are their portfolios

Finally, we’ll check if they can be a good fit for your portfolio. 👇

Many investors track stocks bought & sold by top fund managers.

Reason: They want to identify good stocks.

Well, now there’s a fund that can do this job.

Say hello to @abslmf’s new quant-based fund.

Details in🧵 We will cover 3 key aspects in this analysis:

- The basic construct of quant-based funds & their performance

- Strategy of Aditya Birla Sun Life Quant Fund

- If these funds can be a good fit for your portfolio

Let’s start 👇

Last 3-year returns:

Mid-cap category: 26.5%

Nifty Midcap 150: 28.1%

.@MotilalOswalAMC’s Midcap Fund: 38.3%

But most of this fund's success has come in the last 3 years. Before 2021, it had more misses than hits.

What turned the tide? Some of its high-risk, high-reward strategies have paid off.🧵 This fund is managed by Mr. Niket Shah, who is also the CIO at Motilal Oswal MF.

He has a total work experience of around 16 years, which makes him one of the youngest CIOs in the industry.

In this explainer, we will analyze his 3 unique strategies.

Do Indians require a bigger retirement corpus than Americans?

To plan your retirement, many may tell you to follow the 25X corpus rule.

This rule originated in the US and works well for Americans.

But it may not work in India.

Here’s why. A thread🧵 25X Rule Simplified

Say, 40-year-old Ram wants to retire at 50.

He thinks his post-retirement expenses will be ₹12 lakh a year.

Per the 25X rule, Ram needs 25 times of Rs 12 lakh (i.e., Rs 3 crore) to retire.

What’s the logic behind this rule?

UNPOPULAR OPINION

Balanced Advantage Funds (BAFs) promise to score like Sehwag.

And defend like Dravid.

They can replace large-cap funds in your portfolio, shows data.

We have scrutinized 4 leading BAFs in this 🧵.

Check the data to see if they are a good fit for you. We took 4 top-performing BAFs based on ET Money ranking:

Baroda BNP Paribas BAF
Edelweiss BAF
Tata BAF
ICICI Pru BAF

These funds have consistently delivered amazing risk-adjusted returns compared to NIFTY 50.

Let’s dive into their strategies and performance to discover more.

10 BIG changes in health insurance have been announced by the Insurance regulator IRDAI.

This includes:

- Cashless admission within 1 hour of request
- Policies for all pre-existing medical conditions
- No age limit to buying policies & many more

Details in 🧵 👇 1. Cashless claims

Starting July 1, 2024, health insurance companies must decide on cashless treatments within an hour of request.

Right now, each insurance company has its own rules on how quickly they handle cashless requests and claims.

Think of an index that beats NIFTY 50, but it is less volatile.

Enters Nifty 100 Low Volatility 30 Index.

.@KotakMF has launched a new fund to track this index.

A few other fund houses also have similar passive funds.

Let’s see if this index is as good as they claim. A 🧵 This analysis will cover 4 key aspects of the Nifty 100 Low Volatility 30 index:

- Stock selection method
-Performance against other popular indices
-Comparison with active large-cap funds
-Performance against another low-volatility index

Let’s start. 👇

Good news for mutual fund investors troubled with the KYC mess.

Since April 1, over 1.5 crores of investors faced issues with continuing their SIPs, redeeming money, or investing with new fund houses.

SEBI has taken 3 BIG measures to solve their problem.

Details in🧵 Let’s dial back to give you some context.

From April 1 this year, it was mandatory for all investors to submit their Aadhaar details to have a KYC-validated status.

This status was crucial for seamless transactions across fund houses.

But…