March 2019 Newsletter

<This is an extract from our March 2019 newsletter to clients> Return on capital employed – The Promoter angle Recently, Naresh Goyal stepped down from this leadership role at Jet Airways. The media was buzzing with the story of a travel agent turned airliner who was at the forefront of the air travel boom in India. If you think of it, the air travel industry has grown multi-folds over the last couple of decades. However, Jet Airways has failed to create wealth for its shareholders. This should serve as an example for those who believe that just because an industry will grow, shareholder returns will follow. But, the focus of this letter is on another aspect. Imagine – You started a business and ran it for many years during which the business made big losses, you would have e... Read Full Article

February 2019 Newsletter

<This is an extract from our February 2019 newsletter to clients> Investor Behavior – Returns will come While 2018 was a tough year for most investors, the optimism is still there. Many investors remember the 2017 performance of their stocks and believe that returns will come back in 2019-2020. While investors have enough maturity of thought to understand that returns are not a given and that there could be periods of negative returns, they tend to forget that the market has a 3rd dimension as well – Flat / range bound. Many investors are assuming that the Small / Mid-Caps will bounce back and deliver stellar returns over the next 2-3 years. The expectations of 15% CAGR from their equity investments are still alive. Nifty 10 year chart (1992 to 2002) The above chart shows the... Read Full Article

Alphamultiple ETF Portfolio

All Weather Portfolio for India The Alphamultiple ETF Portfolio runs on the concept of the All Weather Portfolio. This portfolio invests in multiple asset classes to reduce volatility and deliver decent, stable returns over the long term. We have created the All Weather Portfolio for India using the available ETFs. A Passive Investment Strategy We truly want to change the way people treat their investments. Look at your equity portfolio just how you look at your FDs and PPF. But the problem is that you need to actively track your equity investments while your FD and PPF hardly require any regular monitoring. So, to strike a balance, a part of your equity investments should be in portfolios that require little research from your end. Now, how can you harness the power of equities while doin... Read Full Article

ETF Investing in India – Part 2

This blog is the second in our “ETF Investing in India” series. While the first part ( ETF Investing in India – Part 1 ) of the series gave the users a brief overview of what ETFs were, this blog will focus on the best ETF in India to choose for investing. As an investment tool, ETFs give you the power to exploit the growth prospects of a particular country, sector ( IT, Pharma, Banking, etc ) or an index. In India, while we do have ETFs for USA and HongKong, the ETFs for other emerging markets are not yet there. Even for sectors, only the banking ETF has liquidity. The best ETF in India cover Nifty, Nifty Junior, Gold and Nasdaq. Invest in Indian and Foreign indices INDEX ETF Regularly investing index ETF’s give you the exposure of the entire market and keeps your pro... Read Full Article

ETF Investing in India – Part 1

Exchange Traded Funds (ETF) have been generating a lot of curiosity in the investor community in the past few years. ETF Investing in India is still at a nascent stage, however volumes have been picking up. ETF Investing in India Indian markets have seen lack of liquidity in ETFs due to lack of both interest and awareness from the investor community. But in FY 17 and FY18, the Government’s push on the CPSE and Bharat 22 ETFs has made investors consider investing in ETFs. 1. What is an ETF? An ETF is a unit which tracks a particular index, fund or a commodity. It is similar to an underlying of a that index, fund or commodity. As the name suggests, an ETF is traded on the stock exchange. Eg: NIFTYBEES is an ETF which tracks NIFTY and is usually 1/10th of the the NIFTY INDEX. Suppose NI... Read Full Article

January 2019 Newsletter

<This is an extract from our January 2019 newsletter to clients> Investor Behavior – We won’t sell at a loss In the current market conditions, there are times when we must exit positions at a loss. There are periods when we book profits consistently and then there are periods, when we exit many positions at a loss. When we give exit calls, a few investors do not exit the positions. They exit some, they hold the balance for the cost price to come. This is not the best habit to have as an investor. There are reasons why we exit a position, if we knew that the cost price would eventually come back, we would not exit! We would instead add more and hold. The problem is that investors do not take a bird eye view when it comes to looking at the portfolio returns. They look at the return... Read Full Article

How to invest Rs 5000 per month

Invest Every Month The benefits of investing every month in a systematic way are many. It makes you more disciplined, it helps you take advantage of market volatility, it is a lesser burden on the pocket, etc. The most common amount that a middle class person wants to invest now days is Rs 5000 per […] Read more ... Read Full Article