I actually love the video. They have broken down such a complex topic, while all channels even Akshat Shrivastava and Ranlchna Ranade woild not give honest reality of markets
3:05 . Mutual fund on cash meaning they invest in arbitrage or liquid schemes which earn 6% return. When opportunity arises they will liquidate these positions and invest in stocks. So our money is not idle like you said.
I don’t know why you think that. I find the video to be extremely valuable. There is a large narrative that indian markets are booming, all news channels and politicians will say that. But Finshots is true about it and are trying to bring the truth out!
Cash is not paper money, its treasury bills and other cash equivalents which yields 6-7%. Also show historical cash percentage these funds hold if you have any meaningful info.
Finshots video doesnot live upto reputation of newsletters.. I think videos should be to the point, no intro nothing just plain facts and content. Let the video run only for 2-3 minutes.
If you belong to a financial education background. You very well know Mutual Funds are lazy investments. You can easily make a 20-50% gain every quarter when you research and invest independently.
If they can't invest to find out value from any market condition. Why should I give them my money to invest. Why do have to pay 1% of my redemption value for their research when they don't deploy the money to researched profitable investments when it's needed the most.
That's swing trading, that'll have higher taxes every year. Also, the likelihood of losing capital is high. If you spend one year to make 1cr and lose half of it another year, you'll need few more years to break even. Aka waste of effort and time.
Great thought... But you should know how BlackRock and vanguard controls the world economy because of these passive index funds... Not against index funds... But you're investing in all the big companies without having any shareholders privileges like voting which is deligated to these AMCs
There was over optimism in the market during the bull run. Many stocks had very high PE. But their earnings growth have not been able to match up to justify the PE. PE of 50 is fine as long as earnings grown more than 35-40% YoY. But many high PE stocks have had 5-15% growth.
Umm.. whey did the video drop today. Oct 25th . When fiis sold around 1,00,000cr+ and Diis almost covered about 95,000cr+ including todays data. Why this data was not presented and the video ended up asking us a question 🙂 ?!
Its does not a matter high valuation or low, market waiting for correction its happening now, expect support at 24K if its breach then expect next support at 23300, means 11% correction from its ATH. This is the max correction we can expect as of now. If you have cash pump your money and use this opportunity else you will miss the bus. I am doing the same.
NO. cash holding want help in big way because they are pre empting marekt .later on fall they can buy at lower level but that level can be higher than from where they exit and sit on cash.they also loosing opportunity where rely continuing.no body can predict mkt
If they are not investing, how they will generate returns and pay back to invester when they start withdrawing money. They have pay based on NAV right, is there any case that MF will go into losses?
Absolutely wasted lot of time blabbering. Finshots app is awesome and I love reading the articles there. I expect the same on RU-vid as well. If possible, please change the presentation style..
I have a doubt. Can Fund managers ( or Mutual funds ) do trading instead of investing ? Because if they can do trading , valuations don't matter. They can just make profits out of the rally. Anyone having knowledge of it , pls answer😊
you need liquidity. For this to happen someone has to sell it low and someone has to buy it high, if it doesn't happen they will buy high and sell lower
They can but they can't. SImply because of regulations the SEBI has set. you can't invest more than a certain amount [x% of your entire fund money] and can't purchase more than a certain shareholding in a company, so if they purchase lets say future/options they are betting in a certain company, and if they fail they will get the shares and thus violate the rule of shareholding pattern. It is simple the amount these fund houses have is too big and it can easily influence stock market purchase behaviour and it will be a red flag for anyone as it creates a bubble.
Trading is only possible if there is somebody bigger than you who is ready to buy at your selling price. If you yourself hold a big chunk of the total free float. Your selling will lock the stock in lower circuit and your buying will lock in on an upper circuit. It’s not possible for big holders to trade stocks. They can only onload and offload it to retailers. The whole mechanism of stock market is made for the institutions to make money.
It is worst strategy. If it is so why give money to MF houses. It is better to keep money with the individual.....The MF house responsibility is to generate money atleast little in any scenario... That is why expense ratio is paid for and not for holding money.....😂😂😂
You are wrong. Cash reserves still generates returns close to 6-7%. and also on Expense Ratio part(ER), higher the AUM, lower the ER. at the time of NFO the ER will be around 2%, once the AUM increases, it is mandatorily needs to reduce the ER. Put video after researching the basic info. Useless video
