What is the NBFC Problem? What is the government doing to contain the issues? Is Auto Slowdown very severe? Why has equity not delivered good returns yet? Here’s a list of questions that investors want answers to in today’s context: Why is the government not doing enough to arrest the slowdown? Why does the government look to divest so aggressively? How grave is an NBFC problem? Can it lead to contagion? Why are big corporate brands not doing well? Why is the Auto sector slowing down so much? How long will it last? Yes Bank is making headlines for wrong reasons. How grave is the impact? Now t ..read more

We do not believe every crisis leads to a 2008 kind of crash. Equity is volatile and still generates the highest returns versus other asset classes. This article covers the following: Review Outlook Risks Time to worry? Review Nifty Total Return Index (Nifty including dividends) earned ~3% Year to date 2019 and ~10% CAGR in the last 3 years. Nifty continues its highs with a handful of stocks making all-time highs while most of the market is at 52-week lows or even 3-year lows. This has led to underperformance for most advisors and MFs. A lot of stocks in Infra space rallied post-election out ..read more

In our special research report Explosive returns Portfolio 2.0 – Stocks to own under Modi 2.0 we had written that many analysts who are speculating big bang reforms are up for disappointment. The government has limited fiscal bandwidth. It can’t fill the gap of lower corporate capex. We are of opinion that reforms from past 5 years will see its ripple effects in company’s earnings. GST roll-out, Ayushman Bharat, Aawas Yojana, MSP increase, DBT transfer, etc are major reforms that are yet to show results. Implementation of the same till they reach every beneficiary will be lead to better outcom ..read more

Review Nifty Total Return Index (Nifty including dividends) earned 9.4% Year to date 2019 and ~14% CAGR in last 3 years. Nifty continues its ascend with handful of stocks making all time highs while most of the market is at 52 week lows or even 3 year lows. This has led to underperformance for most advisors and MFs. A lot of stocks in Infra space rallied post-election outcome in anticipation of continuation of reforms from incumbent government. However, that seems to be waning off with concerns of tight liquidity, higher cost of funds and GDP growth slowing down. Outlook As on date, average up ..read more

Large cap funds invest in the top 100 companies based on market capitalization. These companies are more stable and they can handle economic slowdown better than mid and smaller size companies. This is also reflected by their tendency to experience lower volatility. This article covers the following: What are large cap funds? Who should invest in Large cap funds and for how long? How to choose the Best Large cap Mutual Funds? How do you find the best Large Cap funds based on the above analysis? Why look at Rolling Returns instead of Past returns? Why Direct Plans over Regular Plans? What ar ..read more

The simple and straight-forward answer to this question is No, Omega is not expensive. Compared to other options Omega is very reasonably price and substantially lower. But is it not expensive on an absolute amount basis? No. Even on an absolute basis too Omega is very reasonably priced and valuable. Here’s a comparison of fees that you will pay for Omega and PMS/MF-Regular Service Fees structure PMS · Upfront Fee (2%) (if purchased through broker) · Other Expenses including Brokerage/ DP Charges/ Custodian Charges assumed at 0.70% · Management Fee (2-2.5%) · Exit Load 2% for the first 12 mon ..read more

We invest to grow our savings to meet our financial needs and goals of the future.  And some invest to create wealth; which is a goal in itself.  Whatever the motivation, what we want is for our saving, our surplus money to grow. So how does money grow? Does it follow a formula? Yes, actually it does; perhaps at a personal level it is the most important formula. Let’s call it the Wealth  Building Formula, WBF. Essentially what this says is that wealth (money available to you in the future) is what happens when you put your surplus money to earn returns and let it compound for a number of yea ..read more

We want our saving, our surplus money to grow into wealth so that it can fund our future financial needs and goals and more. So how does money grow? Does it follow a formula? Yes, actually it does. We call it the Wealth Building Formula. Essentially what this says is that wealth (money available to you in the future) is what happens when you put your surplus money to earn returns and let it compound for a number of years. As you can see there are 3 variables, Surplus (the saving you put to work), Returns (CAGR) and No. of years you stay invested and earn the returns. So how does this formula ..read more

We have all heard the story of the race between the Hare and the Tortoise.  And as children we are disappointed that the Hare loses the race. It’s unbelievable how the fast, alert and smarter looking hare loses the race. As a child I was convinced that the adults have rigged the story to teach us some moralistic nonsense. Which stupid tortoises who can’t even walk fast agree to a race? And why would a hare go to sleep in a race when he can finish the race in no time and then go to sleep. Hares think they are running a 100-meter race When I was older I realised that I had assumed that the race ..read more