Equity Funds

A scheme with superlative performance hidden away from limelight

Generally, you will not see my notes or recommendations on Equity Schemes. But here I am making an exception and writing about one specific Equity scheme from the stable of PPFAS Mutual Fund viz. PPFAS Long Term Equity scheme. While playing golf with Neil Parikh, one of the Founders of the Fund House, we got to talking about his Scheme performance and philosophy of investment. That conversation intrigued me and on my return to my office, I started doing my own bit of analysis of the said scheme on different parameters. What came to light was nothing short of pleasant shock and surprise. I tried analyzing this scheme from all conceivable angles to find some weakness, some faults, some negative surprises. From all angles I was left disappointed that nothing untoward or negative came out of my research (actually I was happy that this scheme passed all my filters and tests).

Off Topic

6 Lessons for Nervous Investors

Through Larissa of Morningstar, I received following queries of an Investor. I was asked to give my views on the same. I requested her to let me write a piece on these queries instead of taking my quotes in bits and pieces and reproducing them. I personally felt that these are queries on minds of most Investors in the current market situation and felt the urge for writing the entire article for benefit of all readers. I wish to thank Larissa for giving me this opportunity.

Mutual Fund View Point

MisterBond's take on current crisis in debt markets due to Mutual Fund Exposure to Essel Group with exposure to Zee shares as Collaterals

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.

Equity Funds

Mid Cap Story – Down but Not Out – Worth Revisiting

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.


How to Advice Clients

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.

Mutual Fund View Point

10 Mantras Of Misterbonds Successful Advisory Practice

MANTRAS for a successful Advisory Practice which has kept me in good stead and managed to maybe think differently

Equity Funds

Dividend Payout Vs SWP

Mis-selling to lure investors to invest funds into such an asset class which is extremely volatile

Mutual Fund View Point

SANTOSHONOMICS - Simplicity is the Ultimate Sophistication

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%).

Mutual Fund View Point

Upgrades V/s Downgrades Story

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.

Mutual Fund View Point

Alpha Over Index by Fund Managers & Alpha Over Fund Managers by Advisors

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.