As the Nifty inches towards its next milestone of 17,000, cheer has returned to the broader market with Nifty smallcap and midcap indices outperforming the benchmark index. However, analysts remain in favour of largecaps.
In this edition of Tweet Buster, we bring you the best of market gyaan and strategies from the world of 280 characters.
The 3 best investments I have made. A thread.
— Radhika Gupta (@iRadhikaGupta) 1629650100000
MF track records
Kalpen Parekh of DSP Mutual Fund said if one takes a 20-year track record, Indian equity funds have done very well and if he takes a 10-year track record, the US equity funds have done better. “Will this tell me what will work in the next 10 or 20 years : unlikely”.
If I take 20 year track record : my 🇮🇳 equity funds have done very well If I take last 10 year track record : My… https://t.co/PKfp7RIAt4
— Kalpen Parekh (@KalpenParekh) 1630144806000
Parekh explained the beauty of asset allocation strategy with an example. The lowest 5-year return for stocks (Indian and global) and gold is – 4% while for bonds it is 1%. “The median: stocks & gold : ~ 12 to 13%, Bonds 6%. All in CAGR. When you mix all 4, the worst is +3% but the median remains 11.5%.”
There are 4 easily accessible investments Stocks : 🇮🇳 & 🌎, Bonds, GoldThe lowest 5 year % for Stocks & Gold… https://t.co/1BwxPUJivt
— Kalpen Parekh (@KalpenParekh) 1630140332000
How to catch a multibagger
PMS fund manager Shyam Sekhar said investors must set a ticket size for their largest holding. “Catch it early. Set the #PositionSizing & work on. Once you reach it, the wait for results begins. The stock will start performing over time. You need to do little or nothing. That’s how #Multibaggers like Titan happen.”
In your mind, set a ticket size for your largest holding. Catch it early. Set the #PositionSizing & work on.Once… https://t.co/f95ymvlzUY
— Shyam Sekhar (@shyamsek) 1630208073000
Microcap hunter Ian Cassel said your largest positions should be the ones that are up the most – not the ones you’ve averaged down the most.
Your largest positions should be the ones that are up the most – not the ones you’ve averaged down the most.
— Ian Cassel (@iancassel) 1629942172000
A stitch in time
Smallcap hunter Soumya Malani said the single biggest reason for big losses in trading is unwillingness to cut positions when you know it has gone wrong to avoid a small loss. “Remember, every big loss was once a small loss that wasn’t cut. Pay market small fees, learn the lesson and move on.”
⚡️Reason for Big Losses:Single biggest reason for big losses in trading is unwillingness to cut position when you… https://t.co/4aFnBXjUOQ
— Soumya Malani (@insharebazaar) 1630117775000