India’s 64-year-old Income Tax law is getting a complete makeover.

A new Bill promises a simpler and more modern tax system.

There are 6 big changes. Let’s have a look. 🧵👇 Before discussing the changes, let’s first talk about what has NOT changed.

The old tax regime is NOT being abolished.

You can still choose between the old & new regimes.
And no new taxes are being introduced.

The bill is about simplification, not increasing your tax burden.

Hexaware Technologies is making a comeback to the Indian stock markets with a massive ₹8,750 crore IPO.

This is the biggest IT services listing since TCS in 2004.

Should you consider subscribing?

Let’s find out🧵 Hexaware was delisted in 2020 by its previous owner, Baring PE Asia.

A year later, Carlyle Group acquired the company.

Now, Carlyle is taking it public again.

Stock splits and bonus issues both increase the number of shares you own.

But why does a company choose one over the other?

And what does it mean for investors?

We break it down. A🧵 Let’s start with stock splits.

A stock split is when a company divides its existing shares into smaller units.

Mathematically, this should lower the price of each share but keep the total value of your holdings unchanged.

The RBI just slashed the repo rate by 25 bps to 6.25%—the first rate cut in nearly 5 years.

But buried in the announcement were 3 important updates no one is talking about.

Let’s break them down. 🧵👇 1. RBI’S BOND TRADING PLATFORM MADE ACCESSIBLE

The RBI and the government have been trying to expand India’s bond market for years.

Both have taken several measures to increase retail investor participation.

Taxable income: Rs 12 lakh → Tax: Rs 0

Taxable income: Rs 12.1 lakh → Tax: Rs 61,500

It would be unfair if you lose a lot in taxes for earning slightly more than Rs 12 lakh.

That’s why there is marginal tax relief.

What is it? How does it help? A🧵 First, some basics.

Your income tax is calculated slab-wise.

For example, say your taxable income is Rs 12.1 lakh.

You won’t pay a flat rate of tax on this.

Here’s how the tax is calculated. 👇

Budget 2025’s Big Announcement:

If your taxable income is up to Rs 12 lakh per year, you pay ZERO tax.

But then, why do we still see tax slabs below Rs 12 lakh?

What is the use of these slabs?

How does it impact you? A 🧵

#Budget2025 If your taxable income is up to Rs 12 lakh, your tax liability is zero.

But what if your salary is more than Rs 12 lakh?

Then, these tax slabs come into the picture.

And different portions of your income are taxed at different rates.

Example. 👇

The concept of averaging down sounds simple.

Buy more shares when the price drops, lower your average cost, and wait for the price to go up.

But does it really work?

Let’s understand with some real-life examples & case studies.

A 🧵 Let’s understand this strategy with an example.

Say you buy 100 shares of a company at Rs 500 each.

A week later, the stock drops to Rs 450.

To take advantage of the lower price, you buy another 50 shares.

So, your average cost per share now falls from ₹500 to Rs 483.

Which stocks did mutual funds reduce their holdings in last month?

We analyzed the portfolios of all diversified equity funds to identify 9 such stocks in the large-cap, mid-cap, and small-cap space.

Let's start with 3 small-cap companies. 👇🧵 3 mid-cap stocks where mutual funds reduced their exposure last month:

- Tata Technologies
- Steel Authority Of India
- Patanjali Foods

PPFAS Flexi Cap reduced exposure to small caps last year.

However, HDFC Flexi Cap & JM Flexi Cap played it differently.

Both have raised their allocation in small-cap stocks.

Let’s dive into the investment strategies of these 3 most popular Flexi Cap funds of 2024.

A 🧵 The 3 Flexi Cap funds we analysed were among the favourites of investors in 2024.

And why not?

They’ve beaten both the Nifty 500 and their category average by a solid margin. (see table)

In this analysis, we’ll unpack their investment strategy to understand them better.

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.