MisterBond's take on current crisis in debt markets due to Mutual Fund Exposure to Essel Group with exposure to Zee shares as Collaterals
posted on 12 April 2019 by Sunil Jhaveri
Please understand the choices MFs had on debt given to Essel group against Zee shares. Let us act maturely, stay calm, think logically, not panic and hand hold investors during such trying times instead of adding fuel to fire which is being done by Media on a daily basis. Our job as advisors is not to be part of the Herd bit be outside the Herd and guide the investors on the right path. Just my thoughts - take them or ignore them.
posted on 13 March 2019 by Sunil Jhaveri
Though I have been an advocate of investing in Multi Cap Schemes and move away from Market Cap Biases; I am also a firm believer of investing and disinvesting at right valuations. With that in mind, I need to bring to the notice of readers a story which has been the darling of investors for many years but currently getting hammered. However, this huge correction of almost 18-20% over past year or so has given rise to a great opportunity to revisit this theme. This is the SWEET SPOT which we always look for. Mid-caps have consistently outperformed Large-caps over longer periods of time; albeit with more volatility. They have been genuine wealth creators.
posted on 02 March 2019 by Sunil Jhaveri
Many times, I am asked whether there should be different strategies for different sets of Investors for achieving their different goals. Basically, should there be a different strategy of investing in Equity or Debt as an asset class for so called “Aggressive Investor” and a different strategy “Conservative Investors”? From my last 33 years of experience in Finance markets and almost 25 years in Wealth Advisory/Mutual Fund practice; my experience is that you cannot bucket Investors as “Aggressive” and/or “Conservative”. I have seen the most conservative investor (pure Fixed Deposit Investor) becoming most aggressive when markets are on a one-way upward movement and the most aggressive Investor becoming the most conservative when markets move against him.
posted on 05 January 2018 by Sunil Jhaveri
MANTRAS for a successful Advisory Practice which has kept me in good stead and managed to maybe think differently
posted on 08 August 2017 by Sunil Jhaveri
Many may not know that my GURU in the debt markets from whom I have learnt a lot through many personal interactions, telephonic and mail conversations is none other than Santosh Kamath. I think he joined FT in 2006 and my initial interactions were few and far between. But first real interaction happened when one of his schemes viz Short Term Income plan delivered close to his captured YTM returns over one year period even in the year when 1 year CD rates went up by 400 bps (4%).
posted on 03 May 2017 by Sunil Jhaveri
All of us predicted a Dooms Day scenario as far as investing in debt schemes was concerned (specifically Accrual Schemes). Fortunately I had penned 4 articles during this period (which are still relevant in terms of its content & message) & wish to take some credit for bringing sanity back in the Industry. We would have killed Accrual Schemes as an Asset Class; the only alternative to beat Fixed Deposits which is the preferred investment vehicle of the investors.
posted on 05 April 2017 by Sunil Jhaveri
As Advisors our role does not end by selecting right scheme/AMC/Fund Manager over the Benchmark. There is one more Alpha that we can generate over & above the Fund Managers’ Alpha & that is the right Asset Allocation, Buy Low Sell High & incorporating a strategy for regular profit booking.
posted on 15 March 2017 by Sunil Jhaveri
In my earlier article, I had written about What Not to Do rather than What One Should Do while selecting equity as an asset class for investment in Investor portfolios. This article will high light some interesting correlation between Sensex 10 Year rolling returns & performance of Equity as an asset class post that. I did some analysis of Sensex 10 year rolling returns & came to some interesting conclusions. Please note that these are only statistics at the end of the day. Hence, please treat it as such & take an informed decision based on other Macro parameters prevalent at the time of investments.
posted on 08 March 2017 by Sunil Jhaveri
One of the simplest measures for understanding whether Equity markets are overvalued or undervalued is the trailing Sensex or NIFTY PE (Price to Earnings) and/or PB (Price to Book Value). It may not be the most accurate measure as these are trailing PE or PB and not forward looking; nevertheless it still gives a reasonable indication of market valuations. Unfortunately we have never married Fundamentals to Equity investing. At 7,000 NIFTY, we said invest for long term, at 8,000 NIFTY and again at 9,000 NIFTY we repeated the same investment call of investing for long term. Definition of Long Term got stretched (to suit our calls) from 3 years to 5 years to maybe 7-10 years going forward.