1/n

There is a SIP investor who is very disciplined.

One month the market crashes because of a global pandemic. His market timing neighbours come to visit. “Such bad luck,” they say.

“Maybe,” replies the SIP investor. 2/n

The next month there is news of a new vaccine that will cure the pandemic. Markets are euphoric. “How wonderful,” the neighbours exclaim!

“Maybe,” replies the SIP investor.

1/n

The move (of corporate bonds) from credit risk fund to a balanced advantage fund (BAF) or a hybrid fund creates, in our opinion, a few issues.

@kuvera_in 2/n

Such transfers create an incentive for credit fund managers to take excessive credit risk in their funds with the knowledge that in the worst case the BAF / hybrid funds within their AMC will bail them out if redemption pressure increases.

1/n #YES bank, some thoughts and views.

This is a communication failure. You don't impose a moratorium on a major bank without a clear end game.

Markets hate uncertainty.

It will create panic. RBI's goal should be to not create unnecessary panic. 2/n #UnintendedConsequences

50k withdrawal restriction is presumably to prevent run on the bank and buy time.

Depositors don't like arbitrary restrictions. Every depositor will withdraw 50k.

It will create a mini-run. I hope they are prepared.

Now, this...

1/n

"We show that it is virtually impossible for an individual to day trade for a living, contrary to what course providers claim."

Source: papers.ssrn.com/sol3/papers.cf… 2/n

"We observe all individuals who began to day trade between 2013 and 2015 in the Brazilian equity futures market, the third in terms of volume in the world, and persisted for at least 300 days: 97% of them lost money, only 0.4% earned more than a bank teller (US$54 per day)"