So, it’s our fav Friday and Personal Finance (PF) topics will be all high on charts. IMHO, learning PF is a life long journey as instruments keep evolving, dynamics keep changing.   To keep updated...

Welcome to Personal Finance's Private Community

So, it’s our fav Friday and Personal Finance (PF) topics will be all high on charts. IMHO, learning PF is a life long journey as instruments keep evolving, dynamics keep changing. 

To keep updated about ever evolving topics, what are the sources you use to learn (watsapp forwards not included ;) ).

Some of the sources, I use - 

1. Research reports of ICICI Direct - Team under Dharmesh shah explain various factors impacting the particular counter, they aggregate various data points and make good arguments for/against any counter. These reports helped me visualise beyond the (P/E) as I prefer value-based investing style.

2. Investor outreach by Parag Parikh AMC - I enjoy reading/watching commentaries by this particular fund house. Learnt a lot about various investment products from these sessions. They provide good frameworks to look at future markets. 

3. Books - Some of the classics provide a holistic view of various investment cycles, patterns. They can become very interesting if you have a long term knowledge gain about PF. My favs are - Coffee can investing, The Intelligent Investor, Behavioural finance books by Parag Parikh. 

Feel free to add your sources and build a community repository. Happy Money Minting!

FriYaY Finance Fundae!

Product Manager

FriYaY Finance Fundae!- Grapevine

DISCLAIMER - I have no intentions to become a finfluencer. These posts are just to trigger personal finance conversations as I see many noobs chasing small/mid caps without a fundamental understanding. 

*3 interesting parameters to select MFs!*

1. Standard Deviation - It reflects the range of returns from the investment amount. 10% SD on 1000 rs investment can return from 900 to 1100. Higher the SD, riskier the investment.

2. Beta - This reflects the downside of MF against the benchmark. Beta < 1, fund has better downside protection. If Beta > 1, fund might fall more if markets see a correction. 

3. Alpha - It reflects upside on fund when risk-adjusted against benchmark. Risk adjustment in easier terms can be absorbed as if benchmark index would have taken similar volatile stocks what would have been returns associated with it. To connect the dots, a fund can have higher positive returns with higher negative returns. Alpha will absorb downside and reflect upside after that. 

Exercise - Check the SD, Alpha, Beta of any two funds in the same category and share your learnings. 

For any category of funds (flexicap, small, large) these 3 parameters can be used for comparisons. Few more parameters are there but those can be explained later. 

Which factors you use while buying a Mutual Fund?  

Happy Weekend!

I’m ready to invest 1L per month. My investment breakup is
30% (₹30000)in stocks (mostly targeting on dividend yield)
20% (₹20000)in Gold
50% (₹50000)in MF 
   -> 30% (₹15000)of this in large cap
   -> 20% (₹10000)of this in Index fund
   -> 10% (₹5000)of this in Small cap

Does this strategy work for wealth growth? Or what other strategy you suggest?

Investment advice

Software Developer

Friyay Finance Fundae is here. With markets peaking and multiple big events (Elections in India, US, rate cuts, budget) in the near future, I was looking for a less-stress investing option. Went down the rabbit hole of momentum-style investing as I see fewer value opportunities in markets with indexes in ATH territory. 

I thought my time investment could help others here who are looking for similar opportunities. I picked 

Quant Flexi Cap 
5Y returns - 33.76%
Expense ratio - 0.59%
Min Investment - 500
48 stocks in the portfolio, looks soft & RIL heavy


Vs 


Capitalmind Momentum (One of the best momentum investors in India)
5Y returns - 36.61%
Small case Fee - 18,000/Yr + STCG
Min investment - 1L+ 
Between 15 to 25 stocks, sharp! 

Overall, at this point looks like MF > Smallcase;  as 3% extra is not worth the costs plus a concentrated portfolio. 

If folks here are curious, I can add some PMS comparisons as well. Feel free to pitch any momentum ideas in current markets.

FFF : MF Vs Smallcase Vs PMS

I started investing pretty late into MF's. Started with around 500-1000 rs per month around the covid period. I have stayed with those funds mostly equities. Till date have a decent XIRR of 30+ with around 20+% profit. (Dont even know what xirr indicates)

I am not sure whether I need to sell this funds and reinvest into another funds.

How to take that call. Any Mutual fund expert plz guide.

Mutual Funds Buy / Sell

I’ll go first. 

1. What kind of investor are you? 
I am an opportunity investor, and I do buy good stocks whenever they are in reasonable valuations. Below are my monthly numbers. 

2. Where’s the majority of your investment portfolio ?
I have three RE investments and one of them has loan. And I’m planning to buy a property in Goa or HP. 

3. What’s your monthly investment breakdown?

1.7L/ Month (approx) 

60k - SIP (mutual funds)
60k - stocks (smallcase, us stocks using vested) 
30k - as opportunity fund, this is transferred to a different bank account 
10-20k - for experimental investments in crypto, nfts, and some trading. This is a new segment and I don’t have much experience in this and that’s why starting small here. 

4. Anything else you want to share? 

I am learning to invest on a daily basis. Reading, videos and podcasts are my sources. Some of my tops picks are Whiteboard finance (Marko), My first Million and Smart Passive Income, finance with Saran, and Akshat Shrivastava.

Where and how much are you saving/ investing per month?

Consulting Director

Apps / Websites that you use for trading stocks , mutual funds, us stocks , fds, bonds and more.

Share your investing tech stack

Senior Product Manager

Need mutual fund suggestions for SIP for 20 years.

Need mutual fund suggestions

Software Engineer

I’m just starting to invest in stocks. Can you pls tell the best stocks for long term?

Mention blogs, fin-influencers, youtube channels, apps , websites 

Thanks :)

What’s your go to website for finance content education

Growth Manager

Here is Link to my last post :

https://share.gvine.app/xA7YknDqHukqJ5Hq8

Japanese markets have fallen to the level of June 2023 in just a few sessions. Such is the nature of the markets.

To gauge the sentiment of the market technically, i look at Sectors, broader market indices and stocks above and below 50 DMA (Short term trend) and 200 DMA(Long term trend). These are not any magic indicators one can use for buy or sell. Just plot it on major indices and see how beautifully they keep visiting it in bull markets. This has been happening for around 100 years and will happen for 100 next.

- SPX, Nasdaq, and Russell 2000 are well below 50 DMA.

- Japanese and Korean markets are well below 200 DMA.

-  Hong Kong is 50 DMA.

- DAX (German), CAC (French), and FTSE (UK) are below   50, 200 DMA.

Thanks to our RBI, we are holding up well and we are testing out 50 DMA today on Nifty 50 and Nifty 500. A lot of DII money is coming in, but we are going to take a hit eventually.Most probably, we will fill out the gap that has formed today. We will see some bit of buying happening before that much-needed 'Correction'. I don't think we will have a vertical fall just like that. A bounce will come on the upside. There is still not a lot of fear on the streets. Now, that doesn't mean I'll go and buy blindly today.

Now I will explain what I did in my portfolio in the last month and what I will do from here on.

I cut down on silver trade with 2.5% loss.
I had written in my last post that I am booking profits from all my trades except for 2 stocks. Three weeks before the budget, I started offloading all my positions, selling 5-10 shares of each stock every day to get that average price if markets keep moving up. What an exit it turned out to be. Phew. Sometimes you get these things right, sometimes wrong. I clearly mentioned that I don't mind if I miss out on a few % gains from here. But I want to protect my profits. If you know how to make money, a few % doesn't matter.


As I was booking profits, I was bringing that money into ETFs. I had even written that I'll be buying IT, FMCG, and AUTO as my ETF choice, a mix of high beta and defensive sectors. Even with ETFs, I was outperforming the markets. Nifty 500 after that went up 6.4%, whereas the IT ETF was up around 14%, FMCG made a high of 9.20%, and Auto was just around the buy price. The trick is to identify the sector that is leading the market. (Auto was not a leading sector , it was CPSE and PSE, Auto was a contra bet).

What have I done today? 80% of my money was in ETFs. Booked an IT ETF completely today with a 6% gain and Auto ETF with a 2% loss. I will again look at the IT ETF after it tests out 50 DMA.  I am letting FMCG run. I am 65% cash today with just one click exit from 2 ETFs. I won't try to be cheeky and pick up any stock today. If I want to build positions, I will do it through ETFs only for the time being. Again, sectors on my radar are IT, CPSE, PSE, PSU BANK. These sectors are still above trending pivot and are testing out 50 DMA. ETFs are not 'sexy' but they are excellent to manage when you have crazy volatility. 

IT and FMCG are the sectors I had identified in my last post where I want to build long term trading positions. Initially, when things were not clear which stocks I needed to get in, I traded them through ETFs. Now, when pullback/correction is happening, I will identify leaders from these sectors and then will go behind them.

What if I had built positions in the last month in stocks? I would have followed my risk management to the T.

- Any position built in the last month that was up 5-7-8% if coming back to buy price - Cut 50%.

- Stock breaking trending pivot on an hourly timeframe get out 100%.

- Any stock going below the breakout candle - Cut 50% and rest 50% at either trending pivot breakdown on Hourly.

 You can always make more money. But you need money for that. Capital protection should be paramount. -5% can quickly become -10%, -15%, and then trades become long-term investments and you get stuck.

As for long-term investors, you need to weather out the storm and be prepared for pain for the next 12 odd months. Keep bringing in new money through SIPs into stocks and absorb all the volatility.

We are in an amazing long-term bull cycle and this is just a blip.

THIS IS NOT A CORRECTION MOST HAVE BEEN WAITING FOR..

Machine Learning Engineer

Hey, I am a fresher and I am looking for resources to understand the world of investing and how to manage my money. Any advice is appreciated. Thank you

Resources to learn about Personal Finance and Investment

I'm just out of college and while I wait for application processes to begin for my masters, I've been working a few content writing jobs here and there and have managed to come up with a decent amount 

Since investing is all the rave, I have been reading a bit about the stock market. Although resources available to help a 20 year old Indian student have been limited or undiscoverable so far. 

Looking for links, stories, personal beliefs or opinions on how I should go about starting  investing.

Navigating the world of stock markets

I want to read in depth business case studies/stories from India. I also want to consume relevant startup news and updates. What is the best place to find such content? Seems like all good content is hidden behind a paywall. If I have to buy a subscription which one should I buy?

Morning context vs The Ken

Which PMS do you use?

Investor

So, I'm a final year B.Tech. student, keen to learn about finance. How and what should I refer to while starting with learning about finance in general?

Please suggest some sites/videos/books for the same.

How to Learn Finance?

Every month my salary gets credited I barely spend 20% of it the rest of it is just sitting around in my bank account it's already above 5L. I keep thinking of investing it in stocks/mf but it's a lot of work 😔 

What do you guys do with your salary, it would be great if you can share your investment strategy and how do you keep yourself motivated to stick to it

What should I do with my money

Hi everyone,
How do you guys decide mutual fund to invest in? Most people go by recommendation by friend or ca but if you want to do your own research it's still tough to decide. Tutorials online will narrow down 1000s of funds to couple of hundreds. How to decide after that? Or is there any other sip that I can starts like ETFs?

FriYaY Finance Fundae!

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