posted on 18 August 2021 by Sunil Jhaveri
Of late I have noticed that NIFTY50 has been scaling new highs but its PE (Consolidated Trailing 12 months) has come off significantly. It is also reflecting in my Algo number and the Equity band it recommends - from 0% in Equity, it is now showing 30% equity allocation in Equity in rising markets. This got me thinking and did my own research with inputs from an explanatory note circulated by DSP Mutual Fund (when Market PEs were changed from Stand Alone basis to Consolidated basis -will write more on this as well) and inputs from Mr. Manuj Jain, Senior Product Specialist at ICICI Prudential Mutual Fund.
posted on 07 May 2021 by Sunil Jhaveri
Today, I wish to go down the memory lane of this past 1 year and put things in perspective – this entire saga for the benefit of not only the affected Investors; but for all in the Mutual Fund Industry. This can then work as a guide for the Mutual Fund Industry at large.
posted on 04 November 2020 by Sunil Jhaveri
Those following Asset Allocation can only stare at erosion going forward - be it in Debt or in Equity. One strategy and scheme which is well poised to take advantage of current situation is : Axis Banking & PSU Debt Fund - which follows Constantly Rolling Down strategy. Treat it as an alternative to Liquid schemes and earn better returns than pure Liquid schemes with no Credit or Interest Rate Risk (if held till maturity) and avoid Reinvestment Risk as well. Please read on my thoughts on this Scheme
posted on 20 May 2020 by Sunil Jhaveri
PaSt couple of days, there were lots of WhatsApp forwards on how most of the Credit Scheme redemptions are met by transferring them to other schemes of the same AMC. Some concalls were also made by AMCs to quell these doubts and/or give explanations for the same. All the WhatsApp groups were only abuzz with these stories throughout the day with lot of agitated to and fro among the group members
posted on 06 May 2020 by Sunil Jhaveri
Investors are wary of investing even in Liquid schemes or Ultra Short-Term Bond funds due to all the various events and circumstances. Many have in fact, redeemed out of these schemes; thereby showing extreme risk aversion to investing. Equity market corrections and COVID issue has also added fuel to fire. In such circumstances, there is one Asset Class which is capable of fulfilling the investment needs and criteria of suck risk averse investors. Ideal for investment horizons upwards of 3 months plus. This Asset Class is Arbitrage Schemes. This fits the bill for all such risk averse Investors.
posted on 24 April 2020 by Sunil Jhaveri
This note may sound like I am trying to defend the indefensible. I am only trying to bring in a very different and a dispassionate view to this entire saga and its implications and repercussions. What has happened has already happened; what we can salvage and communicate with our Investors will make all the difference. Otherwise, entire Credit space and with that Debt schemes of entire Mutual Fund Industry will have existential crisis. We will lose faith and confidence of Investors with huge credibility issues going forward. Hence, all I am trying to do is Control the Controllable and not concentrate on what is already done and not in our hands. Those who know me, know that I have always found some positive message in any times of crisis be it JSPL, Amtek Auto fiasco, 2013 Income Fund fiasco or 2019 FMP fiasco due to delay by Essel group.
posted on 20 April 2020 by Sunil Jhaveri
Advisors can build their entire Mutual Fund practice by embracing only Dynamic Asset Allocation Funds (DAAF) instead of investing in Market Cap Bias schemes like Large Cap, Mid Cap, Small Cap or by investing in Sectoral Funds like Pharma, Infrastructure, etc. Many were not even aware of this category only when Markets turn volatile, bearish, uncertain is the time when talk of this category gets noticed and talked about. Most media â€“ print and television have started highlighting virtues of this Category and become proponents of the same. However, those who follow me, read my articles, attended my lectures or Webinars or seen my Workshop videos are aware of my thoughts on this category since past 8-10 years. I have always treated this category as ALL SEASONS STRATEGY which can work well in any Market conditions and also deliver happy investing experience.
posted on 17 April 2020 by Sunil Jhaveri
Today I am going to write about a scheme about which I was skeptical for quite some time. This scheme just does the opposite of what I believe in, which is invest/disinvest based on Market valuations. Those who know me and follow me will be witness to my thought processes of moving away from Traditional Mantras of Buy & Hold, SIP Karo Bhool Jao and Do Not Time the Markets. I have been a great believer and proponent (my own Mantras) of a) Downside Protection and b) be in the right Asset Class at Right Valuations. I have always believed that Investors are like Abhimanyu â€“ stuck in Equity Chakravyuha â€“ not knowing how or when to Exit.
posted on 06 March 2020 by Sunil Jhaveri
Most experts were predicting S&P Sensex to be above 42500 and NIFTY 50 above 13000 levels by March 2020. With this back ground, let me start my narrative of this article and my own thoughts on where we went wrong, what should have been our role as Advisors, should we have only listened to the Experts and not applied Logic and Common Sense to our Advisory practice and finally should we have continued to believe in the old adages like Buy and Hold, SIP Karo Bhool Jao and Do Not Time the Markets?
posted on 29 January 2020 by Sunil Jhaveri
It has been a turmoil filled 2019-2020 as far as debt markets are concerned. What was 2008-2009 for Equity markets has turned out to be 2018 onwards in Debt market space since IL&FS defaults and downgrades and thereafter many more defaults by well known names like DHFL, Essel Group, Cox & Kings, and many more. How to approach it as a need and a solution click on the article to read more.