Akriti Swaroop, CFA

100 out of 178 firms decline approx 4% in a day @ Quant MF owns Rs 90,000 cr assets - Front-running occurs when an individual, often an insider or broker, executes trades based on advanced knowledge of pending large transactions including in last 1 year up Arvind 185% Swan Energy 140% Gujarat State Fertilisers s65%, while Brooks Laboratories advanced by 25% https://lnkd.in/gY9wts56

- Retail investors often lose money in the markets for various reasons. The most common reason is letting emotions like greed take over. #InvestmentMistakes #RetailInvestorChallenges - Trading should be approached with patience and strategy, much like a Test match in cricket. However, retail investors frequently treat it like a fast-paced T20 game. #TradingDiscipline #CricketAnalogy - Algorithms have a significant advantage in trading because they remain disciplined. Unlike human traders, they don’t succumb to emotions like greed or anxiety. #AlgorithmicTrading #EmotionlessTrading - At Nozomi Infotech, we provide cutting-edge algorithmic trading software. Our solutions help investors trade with confidence and discipline. #NozomiInfotech #TradingSoftware - Interested in seeing how algorithmic trading can work for you? We offer demos, free trials, and downloads to help you get started. #FreeTrial #TradingDemo

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BEW Engineering – An Interesting Opportunity 🪀 1. Renowned investors Ashish Kacholiya and Mukul Agarwal have taken stakes in the company at an approximate price of ₹1,500. 2. The share is currently trading around ₹830 (adjusted to ₹200-206 due to a stock split). 3. The recent fall in the stock price is attributed to bulk deals, with one significant seller exiting their position. 4. The company has previously provided strong future guidance, and current valuations appear reasonable. However, the decision to buy will depend on the outcome of the company’s concall scheduled for November 21. Disclaimer: This is not a stock recommendation. 🙏 #smeinvesting #investing #bewengineering

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Interesting Pic for the Day : BSEFMCG Index Stock Operating Performance for year ending FY 2024 and FY 2019 Total 83 stocks are part of this index , out of which 73 companies have financials for both the time period . The Aggregate Sales of these co is around 5.33 Lacs crs which is appx 1.8% of India GDP . The aggregate Sales and PAT for 5 year grew around 10% reflecting the broader economic growth . ITC is a clearly leading in terms of sales and profit with PAT crossing 20,000 Crs which very few Indian co have achieved this feat . 24 out of 73 companies reported Sales growth more than 14% which is very healthy given the aggregate growth is around 10%. Common trait among these companies are - OEM manufacturer who scaled up with existing and new customer , Brewery co due to higher taxes , M&A and organic growth. Only 4 companies out of 73 reported losses reflecting the underlying very good unit economics of the industry structure which provides a very good hunting ground for long term compounding of wealth . #Investing #FMCG #Corporate #CEO

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Should you be concerned about the stock market's latest FII selling numbers? Foreign investors have done massive selling in the last 2 months; they sold around ₹1.14 lakh crore and ₹45,974 crore worth of shares in October and November, respectively. Although these figures appear substantial, they still represent a small portion of their net investments in the Indian stock market. FII’s total investments in the Indian equity market are Rs.71.08 lakh crores (as of October 2024). So roughly they have sold around less than 2% of their total investments from India. Surprisingly, December saw a reversal trend with FIIs buying shares worth ₹11,933 crores.  This inflow of money from FIIs may benefit the BFSI and IT sectors the most. Indian IT companies have transitioned from basic outsourcing to high-value consulting, making them attractive to foreign investors. With a strong dollar, IT firms gain an edge as their rupee earnings grow, and the banking sector stands to benefit from FII passive inflows as it constitutes a significant portion of the large-cap index. The recent CRR rate cut has provided additional liquidity for lending, and the RBI Governor’s emphasis on the banking sector’s health reinforces optimism. Additionally, BFSI includes wealth management, stock exchanges, broking firms, and insurance companies, which will benefit from rising per capita incomes and increased savings and investments #StockMarket #IndianEconomy #WealthCreation #CapitalFormation #EconomicGrowth #InvestingInIndia #BusinessGrowth #GlobalInvestment

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Separating the Wheat from the Chaff.... गेहूँ को घुन से अलग करना Case in Place : Q2 FY 25 Excessively Poor Corporate Earnings. What Gives ❓ Corporate India put up a disappointing show during Q2FY25 with earnings posted by most companies falling short of Street expectations. However, not all sectors have fared badly. 🔻 When doing sector-wise performance analysis, it showed almost all microfinance institutions (MFIs) and companies in the oil refining & marketing space have missed estimates. 🔺 On the positive side, Commodities Companies & PSU Banks have largely surpassed estimates. Q2 insights signal a slowdown in URBAN demand across key sectors like 🧨 FMCG 🧨 Retail 🧨 Auto 🧨 Mall operators On the Flip Side, RURAL sector economic activity is on the rise 👍🏿 My 2 pennies : 🌈 Our Ray of Hope : 🌈 On Going Festivals from Dandiya to Diwali to Christmas to Eid will keep augmenting sales. 🌈 43 Lakh Weddings in India through December 24 - Feb 25. 🌈 The long on going festive season shall provide a boost, especially if discounts stimulate consumer activity. 🌈 Government capital expenditure has also started in a big way and sustained rural demand will also be key factors to monitor. 

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The last time FCNR (B) deposit rates were hiked proactively was on 6th July 2022. The USDINR climbed higher. I was warning you since months earlier - May 2022 onwards. Today the RBI hiked FCNR (B) deposit rates for NRIs yet again. Will history repeat itself? Watch this video https://lnkd.in/dpccHgEf to find out. Like the video? Please share, subscribe, like and comment!

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Hope the election chaska is being enjoyed by everyone 😁 Option trading doesn't have to be a tough business if taught in its true spirit. Whenever any business goes wrong, rather than understanding what went wrong, a loser's mindset always blames the industry. This shows lack of knowledge and awareness. Valuation matters the most in Investing which usually gets discovered in the market correction. A true option trader knows more about valuation than a fund manager. The speed at which he can spot undervaluation and overvaluation and can generate consistent alpha is just brilliant. In our journey of running a Prop desk and on a mission to rightly educate everyone about the reality of derivative trading, we have trained students, fresh out of college to a CIO of a 3,000 crores PMS/ AIFs. We have never blown up our account, this includes last 8 years of our team being in derivatives. The maximum drawdown we have lived is 28% collectively in last 6 years. When it comes to our students, till date, we have not recieved a single compliant. Majority of them have either ventured into full time trading and killing it in the business or doing it side by side. If any of our students who follow us on linkedln will agree to it 😊 YES, I agree our courses are relatively expensive and it takes a lot of thought to put that capital to learn options. I would not indulge in explaining why the cost is such. If our time to time newsletters and articles haven't left an impact, then maybe we need to work more hard. We have created this venture from scratch and its bootstrapped and we have complete rights to our calculations which we believe NO ONE IN THE NATION DOES (This the pride we carry). Again, our students will agree. There is a reason in last 8 years of us training Investors/ Traders, we have never ever offered a discount (just once for one batch, a year ago). In our journey of establishing a wholesome experience of a smart money skills and the trades they take, our performance speaks for itself. We do not trade with discount brokers. We have our Prop Ids with Prop brokers (3 of them - 2 in Kolkata and 1 in Mumbai). We keep our sessions very tight and limited to only 5-6 students in a batch. We never attend any seminars, no option conclave, nothing. WHY? That's for you to understand.. Recently, we have been planning on doing meetups and will do one very soon in Mumbai. It's time, we show everyone, how we are different and how you can be consistent profitable by just understanding Option Premiums. In that note, we were thrilled to see the response for May 2024 batch and hence to accommodate few more students, we have decided open up a parallel batch starting from 17th May 2024. Kindly fill up the form and we shall get back to you in next two days. We plan to close the registrations by friday (10th May 2024). https://lnkd.in/dwhyhyb3 #PREMIUMSNEVERLIE.

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#Nifty trading using Keltner channel showing bounce back from lower end of channel and hurdle is at 22300 levels, ATR rose sharply suggesting option buyers opportunity, expecting up move to mid level then reversal back again to 21950 levels.

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In 2022 when debt funds and FD returns were all time low and investors were searching for higher yields through REITs and other options, we spoke about investing in debt funds. FD delivered lower returns but most debt funds has delivered returns around 7% for 1/2 years. The difference between debt funds and fd is that FD rates are fixed and debt returns are market linked. Market linked options repriced themselves faster. Current FD rates are rates for future and it’s not what investors got in last 1/2 years but debt fund returns are what investors got in last 1/2 years.

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Interesting Pic for the Day : PAT growth Count Sector Wise . Out of498 companies reported PAT numbers in BSE 500, 235 companies reported 20% plus PAT growth for FY 2023-24 , 42 Companies reported 10-20% PAT Growth Etc. HG/LW Ratio refers to High Growth vs Low Growth with in the sector to understand how the companies within the sector has done . For Eg : In healthcare HG/LW Ratio is 1.25 refers to for every 1 company which reported slow or negative growth ( Less than 10% growth ) to 1.25 company reported stronger growth ( More than 10% ). In healthcare its all about stock selection as the ratio is very close to 1 vs banks where the ratio is 3.14 reflects most of the co in this sector did grew well in terms of profits. As a capital allocator at times getting the sector call right pays rich dividend like what happened to capital goods and Defense segment in last 2 Years. #Opportunity #Investing #capitalallocators

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So , today I came across this news that SEBI has proposed a new asset class placed between mutual funds and PMS for high risk taker investors. They have put the minimum threshold for investment in this product as a minimum of 10 lacs , which could be good for investors who don’t wish to invest 25 lacs in a PMS but still want to take advantage of different investment strategies. The difference between a mutual fund , PMS and this new asset class is that SEBI has proposed this new asset class to invest in derivatives for purpose other than hedging and rebalancing. That means the fund can take advantage of volatility in futures and options , more so in case of big events or geopolitical events. However this new asset class will be more riskier than traditional MFs and therefore they will be branded and advertised differently. Also, all mutual fund houses or AMCs can offer this new product once launched officially. However there are conditions in this new asset class under which investment in derivatives can be done , the conditions are stated in the article attached . As an investor one can think of deploying their capital in this asset class but with a Clarity that it’s certainly a high risk instrument. Lastly, one of the unique strategy that will be launched under this new asset class is Inverse ETF, also called “short ETF” or “bear ETF”, this strategy seeks to add returns that are inversely proportional to the returns of the underlying index. Another strategy, the fund will use to seek returns is by taking long and short positions in stocks at the same time, something the traditional mutual funds are not allowed to do . SEBI will now take suggestions in this proposal till august 6 and then decide upon the final launch date. To my fellow investment advisors and traders , what are your views on this news ? # Investment advisors # Trader # LinkedIn for entrepreneurs.

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93,000 Cr. UNDER RISK ⚠ 🆘 Quant Mutual Fund, managing a whopping ₹93,000 Cr, faces SEBI raids in Mumbai & Hyderabad. What’s the impact on small caps? Here’s everything you need to know! 1.SEBI's crackdown on Quant MF has shaken the market. The fund, with significant small-cap holdings, is accused of front-running. But what is front-running, and why does it matter? 2.Front-Running Explained: Intermediaries use insider info on large mutual fund trades to profit. This illegal practice manipulates stock prices, hurting mutual fund investors. 3..Quant MF has grown exponentially, from ₹258 Cr AUM in Jan 2020 to over ₹90,000 Cr by June 2024. This fund’s meteoric rise is now under scrutiny. Could this scandal halt its momentum? 4.Small Cap Impact: Quant’s small cap holdings, like Century Enka (7.87%), Orchid Pharma (6.83%), and HFCL (6.42%), might see significant volatility. Expect some underperformance in the near term? 5.SEBI’s operation follows the recent rise in front-running activities. Remember the Axis MF scandal? SEBI is now mandating enhanced surveillance and stricter controls to curb these illegal practices. 6. Market experts warn of potential redemptions and slowed fund inflows for Quant MF. Investors should brace for possible turbulence ahead. 7. Investor Takeaway: Stay informed and vigilant. Understand the implications of such practices on your investments. Follow for more updates as this story unfolds. (P.S. attached the holdings in small cap of the Mutual Fund house) We are building moneyhealth.ai which can help you invest wisely and manage your budgeting smarter. choosing your investment is difficult, if you aren't sure where to invest ? check moneyhealth.ai where our AI will help you choose the right fund. #mutualfunds #moneyhealth #investwisely #quantfund #stealthstartup

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Based on the data provided and the analysis, the following conclusions can be drawn: 1. Passive Large Cap Funds Outperform Active Funds: The data shows that only 24% of active large-cap mutual funds have beaten their benchmark over a 7-year SIP period. This suggests that passive index funds or exchange-traded funds (ETFs) tracking large-cap indices may be a better choice for investors in the large-cap segment, as they provide market returns at a lower cost (expense ratio of 0.1% to 0.3%) compared to actively managed funds (expense ratio of 0.6% to 1%). 2. Active Small Cap Funds Perform Better: In contrast, 85% of actively managed small-cap funds were able to beat their respective benchmarks. This outperformance can be attributed to the inefficiencies and lack of research coverage in the small-cap space, providing skilled fund managers with opportunities to identify undervalued stocks and generate alpha (excess returns). 3. Cost and Efficiency Dynamics: The data suggests that as markets become more efficient, especially in the large-cap segment, it becomes increasingly difficult for active fund managers to outperform benchmarks consistently, making passive investing a more attractive option. However, in less efficient segments like small-caps, active management can still add value by exploiting inefficiencies, justifying the higher expense ratios. 4. Market Evolution and Potential Convergence: The analysis indicates that as markets mature and competition increases, actively managed funds may struggle to generate alpha, leading to a shift towards passive investments, similar to the trend observed in the more developed markets like the United States. However, there is a possibility that the small-cap space may also become more efficient over time, reducing the potential for active outperformance. In summary, the data and analysis suggest that passive investing through index funds or ETFs may be a more cost-effective approach for large-cap investments, while actively managed funds can still add value in the less efficient small-cap segment, at least for the time being. However, market dynamics and efficiency levels are subject to change, potentially altering the landscape for active and passive investing strategies in the future.

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