Nifty 500 is around 11.3% down from its 52-week high.

But the correction is more brutal at the stock level:

- 211 stocks have plunged over 30%
- 212 stocks are down 15-30%
- Only 77 stocks have fallen less than 15%

A 🧵 on what you can do to build a bulletproof portfolio to handle.

Credit to Aashish P. Somaiyaa (@AashishPS), CEO of White Oak Capital MF, whose recent newsletter provided many insights for this thread. Let’s first understand what has happened in the market over the last few years.

Amid the recent bull run, market segments like defence, railways, PSU, and manufacturing have benefitted from macroeconomic tailwinds or government policies.

There are currently 11 NPS fund managers.

The gap between the best and worst is huge.

Which one should you pick?

Let’s check their performance & find out.

Retweet the🧵 to educate other investors. All the 11 NPS fund managers offer 4 types of schemes:

Scheme E (Equity)
Scheme C (Corporate bonds)
Scheme G (Government bonds)
Scheme A (Alternative investments funds)

You can have different fund managers for different schemes.

Mahindra & Mahindra’s stock has done far better than its rivals over the last year.

But where do its financials stand?

Let’s put M&M, Maruti Suzuki, and Tata Motors head-to-head to find out which is the best automobile stock in India.

Retweet the 🧵 to help other investors. We will compare these 3 companies on 4 key metrics:

-Business model
-Automobile industry-specific metrics
-Financials
-Valuations

Let’s start.

After Harshad Mehta, Ketan Parekh is the king of stock market scams.

His latest con is a Netflix-worthy thriller.

SEBI tracked phones, checked hotel & airline bookings, and investigated for 30 months to expose this scam.

Retweet the 🧵 to inform more investors. We will explain this entire episode in 2 parts:

- How Parekh masterminded a slick front-running scam with his network

- How SEBI tracked him down

Let’s start. 👇

Remember Michael Burry from the ‘Big Short’ movie?

The legendary hedge fund manager predicted the 2008 financial crisis & made millions.

Now, he’s betting big on the blue gold: Water.

Can water become the next big thing?

How can you invest in this theme? A 🧵 Can the water industry be the next mega-investing theme?

The UN expects the global population to reach 9.7 billion by 2050.

However, freshwater resources are rapidly depleting.

The World Economic Forum estimates that by 2030, water demand will outpace supply by 40%.

Reading annual reports can be overwhelming.

It has hundreds of pages of disclosures and data.

To start with, don’t go through every page.

Instead, focus on the five most important sections. (See image)

A 🧵 on how to do it, with real-life examples. 👇 1. MD/Chairman’s message

This segment describes a company’s key achievements for the year, the challenges it faced, and its future plans.

Pay attention to their focus areas—are they innovating, addressing challenges, or simply coasting along?

Toppers in different categories by 1-year returns:

- Mid Cap: Motilal Oswal Midcap

- Large & Midcap: Motilal Oswal Large & Midcap

- Flexi Cap: Motilal Oswal Flexi Cap

What has worked for @MotilalOswalAMC?

We dug into their portfolios & found 4 fascinating insights. A 🧵 1. Common Stocks

There’s a lot of overlap among the top holdings of the four schemes.

For instance, they all have sizable investments in Kalyan Jewellers, Trent, & Zomato.

Interestingly, these are missing in the Focused Fund, which hasn’t done well.

Vishal Mega Mart’s ₹8,000 crore IPO is here.

The retailer lags behind its rival DMart in profits. But it’s growing faster & has more stores.

However, this IPO has ONE BIG concern & many investors may not like it (Refer to Tweet 9).

Let’s dive into the details. A🧵

(1/15) We will cover 5 key aspects in this analysis:

- Vishal Mega Mart’s business model
- Financials and valuations
- Compare its numbers with Avenue Supermarts
(DMart)
- Key IPO details
- Strengths and challenges

Let’s start. 👇

(2/15)

When markets tumble, small-cap funds usually fall the hardest.

Large-cap funds tend to hold up better.

But over the past two months, it has been the complete opposite.

Why did this happen?

Is it time to invest more in small-cap funds?

A 🧵 This performance of small-cap funds is in line with the returns of their benchmark.

In the last two months, Nifty 100 fell 8.2%.

Meanwhile, Nifty Smallcap 250 dropped nearly 5.7%.

There are two key reasons for this unusual trend.

Last 10-year returns of some top-performing Focused Funds:

Quant Focused Fund: 16.91%
Franklin India Focused Fund: 15.41%
SBI Focused Fund: 15.32%

But there’s a little-known name which has done even better. Which is that dark horse?

What has been its secret? A 🧵 We are talking about 360 One Focused Equity Fund.

It has recently completed 10 years and has also been the top performer over the last decade.

That said, this scheme has had its ups and downs.

Let’s review its performance & strategy.

NTPC Green Energy has come up with this year’s third-largest IPO.

But much of the discussion is around its valuations.

Even though it's smaller than Adani Green Energy on multiple metrics, NTPC Green Energy’s valuations are much higher.

Is this IPO worth considering? A 🧵 We will cover 3 key aspects in this analysis.

- Understand NTPC Green’s business model

- Compare financials & valuations with Adani Green

- Looks at some key IPO details

Let’s start.

Markets tumbled in Oct, giving cash-heavy mutual funds a buying opportunity.

But, funds like PPFAS Flexi Cap & SBI Contra raised their cash holdings.

We looked at 5 such latest mutual fund trends. A🧵

Don't miss Tweet 6. It has stocks that MFs bought after steep correction. 1. Cash Holding

31 diversified equity funds in September were holding over 10% cash.

By October, this number was reduced to 25 schemes.

So, there are exceptions, but most schemes have reduced their cash holdings last month.

You can check some popular names in the table.

Imagine 3 years ago, you invested ₹1 crore in Nifty Midcap 150.

Kept withdrawing ₹1 lakh every month via SWP.

In 3 years, you redeemed ~36% of your initial corpus.

Yet, your current investment value is ₹1.27 cr.

SWP looks amazing on paper.

But it can be problematic.🧵 Before we dive into the “real” math, here are some basics about SWP. 👇

An SWP allows you to redeem in a phased manner.

So, it averages the price at which you exit the market & helps you avoid redeeming all your investments at a market low.

In a way, an SWP is the opposite of an SIP.

The last 1-year returns of Edelweiss Mid Cap Fund are phenomenal.

Scheme’s returns: 59%
Category average: 48%
Benchmark: 45%

Based on 1-year returns, it is among the top 5 mid-cap funds. But is it a consistent performer?

We reviewed its performance & strategy. 👇

Retweet the🧵to educate more investors. Before we jump to the numbers, here is some important background.

Launched in August 2011, the fund has been rechristened multiple times.

For instance, in 2016, Edelweiss acquired JP Morgan.

And JP Morgan Mid and Small Cap Fund was merged into Edelweiss Emerging Leaders Fund.

The benefits of SIPs are well-known.

However, some hard facts about them deserve more attention.

We will explore 3 such overlooked realities in this explainer. 👇

Bookmark this🧵to revisit it later.

Also, consider retweeting it to educate more investors. 1. SIP Amount Is More Important Than Returns

Say you start two SIPs of Rs 5,000 each for 20 years.

1st SIP: You invest a fixed amount and earn 14% returns.

2nd SIP: You increase the investment amount by 10% every year but make only 10% returns.

What will be the outcome?

Swiggy is coming up with an IPO tomorrow.

It plans to raise over Rs 11,300 crore through this IPO.

Can Swiggy deliver returns like its rival Zomato?

Let's check its fundamentals and valuations.

Retweet the thread🧵to educate more investors. We will cover 3 key aspects in this analysis.

- Swiggy’s business model (look beyond food delivery)
- Compare its financials & valuations with Zomato
- Check some key IPO metrics

Let’s start. 👇

Which Flexi Cap fund has been the top performer over the last three years?

Hint: It isn’t PPFAS Flexi Cap or Quant Flexi Cap.

The answer is JM Flexi Cap.

And its popularity is going through the roof.

So, we reviewed its performance and investment strategy. A 🧵 Let’s start with its performance.

- TRAILING RETURNS

We checked the fund's 1, 3, 5, and 10-year trailing returns.

It has outperformed the category average and its benchmark in all time frames.

It also ranks among the top 2 schemes in the category.

It is auspicious to buy gold on Dhanteras.

But is it more rewarding than doing an SIP in gold?

We crunched some numbers & the result was surprising:

Gold SIPs aren’t really better than buying gold once a year in Dhanteras.

More details are in the thread.🧵👇 First, we calculated the SIP returns of gold.

For this, we considered a monthly SIP of Rs 10,000 in Nippon India Gold ETF BeEs. A 10-year SIP gave 12.80% returns.

Then, we calculated returns for someone who bought gold just once every year on Dhanteras. The 10-year returns were similar.

Nifty 50 is ~8% down in the past 1 month.

Concerns about market overvaluation are mounting.

Foreign investors are on a selling spree.

Amid such tough times, where are top fund managers investing?

To find an answer, we examined the portfolios of 5 veteran fund managers. (Details in image). A🧵 We will cover 3 key aspects in this thread:

- Analyse how much cash these fund managers are sitting on

- Examine if they are leaning towards large-cap, mid-cap or small-cap stocks

- Look at the sectoral calls of these 5 fund managers

Let’s start. 👇

Do you know which company built the iconic Atal Tunnel and Chenab Bridge?

The answer is Afcons Infrastructure, a Shapoorji Pallonji Group company.

Afcons is coming up with an IPO.

Should you invest in it? We will check the company’s fundamentals to find out. A 🧵 We will discuss 3 critical aspects in this explainer:

1. Business model
2. Financials & valuations
3. Key IPO metrics

Let’s start. 👇

PNC Infratech, a favourite stock of mutual funds, crashed 30% this week.

Mutual funds hold ~24.5% stake in this company. Notable schemes include HDFC Small Cap, Nippon India Small Cap, etc. (See image)

How will this impact mutual fund investors? A 🧵 First, let’s understand why PNC Infratech has crashed.

It turns out some PNC officials were allegedly bribing people at the National Highways Authority of India (NHAI).

After a hearing, the Ministry of Road Transport and Highways (MoRTH) has banned PNC Infratech from participating in NHAI tenders for a year, effective October 18, 2024.