I am with Bargain Buys from Nov 2017. When I had very low capital in Bargain Buys I saw good profit and when I put more I lost value in more … lol it looks funny for me and I wanted to stay longer in the small cases for my life time as I like the concept.
The real question here is
Does any one have seen good profits in small cases… for me I want to get around 15% tp 20% every year on an avg what is the best small case you can suggest me ?
The problem with smallcase is that they have no performance metrics for .e.g sharpe ratios / volatility.
Showing returns does not show the complete picture. I have no idea what kind of risk they took or what kind of volatility they sustain inorder to generate that returns. So i have no confidence in the small cases.
Another point is they re not sufficiently diversified in each sector , so there is huge sector & stock risk in these small cases.
Better to buy direct MF.
Thanks.
I need some help here. I am believing in in the money market instead of real estate or any other investment. How good is that. And Currently I am working in USA. And I am investing all my money in MF’s, PortFolio Management Services, Small cases …
What do you suggest me ?
I don’t see any point in small case. Small case works on the idea that you invest in a “idea”. How will a normal working joe have any clue about a trading idea? It just ridiculous. And even if he did have a good trading idea/theme, he would just go buy the stocks and hold it in his portfolio.
A normal working man has no time or the inclination to study markets everyday let alone come up with a idea and it takes a lot of effort(time/research/analysis) to come up with a idea.
MFs simply invest in the best companies after research and analysis and they have done quite well. This is why you have to pay the expense ratio. you can’t expect them to work for free. LOL.
Don’t know why people complain about paying fund managers and their team 1-1.5% for their livelihood.
I would suggest stick to ETF’s or MFs.
In USA, there are plenty of ETFs or index funds. Go for it.
In India, stick to MFs.
Yes I am not worried about expense ratio. My only concern is my money should grow in india with 18%. Thats all I want it
In that case , no worries. India has enough growth potential although not as good as US/China/EU. It will always be a EM. so the growth should be there for a long long time…
Having said that you should aim for higher returns.
if you want higher returns and are invested for longer term, go for midcaps and small caps. you should generate 40-50% with ease.
18% is something any grandfather will generate with large caps. Why stop yourself.
these are two Main mfs in my portfolio.
Mirae Asset Emerging Blue chip fund
Principal Emerging Blue chip fund.
Will these be fine ? and suggestions for Small cap fund ?
For small caps
- L&T Emerging Funds.
- HDFC Small cap.
- SBI Small cap.
- Reliance Small cap.
- Aditya Birls Small cap.
Mirae Asset Emerging Blue chip fund
Principal Emerging Blue chip fund.
What about these funds. Do you think can I see return more than 18% per annum.
yes, certainly.
These are midcap funds, so you should expect more than 18% , if the markets perform.
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Good mid/small cap funds like Reliance Smallcap fund and Aditya Birla should give
30% + in boom years
18-22% in decent years
??? in bad years
Next one or two years may be bad years I feel lets see, so better do SIP dont put bulk in one shot
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smallcase is a set of stocks formed based on a particular idea / theme / model. Idea as in the upcoming trending ideas which would be easier for the working peeps and for the basic investor who has limited knowledge on selection of stocks. For Eg,
Electric Mobility - which has the set of stocks that would get benefited from Electric Vehicles which is the upcoming trend in India
Transporting India - If you feel the transaportation In India will boom up, you can invest here.
The GST oppurtunity - Companies that would get benefited from the GST plan.
Rising Rural Demad - Stocks that helps in growing Agriculture of India
However, unlike mutual funds, smallcases are
- transparent & customizable (you buy the stocks into your account directly vs buying units of the fund)
- liquid (no lock-ins, value changes during the market hours)
*more cost effective (no expense ratio, only flat fees) - can capture a lot more use-cases (GST, rural demand, increasing internet penetration, different strategies for growth, value, momentum, dividends etc)
There are few smallcases that has more than 30-40% returns in a year. You can filter the smallcases based on the yearly / monthly returns from its Discover section and can choose any in which you are positive and confident for the long term.
All these ideas/themes are part of the sector which are either bullish/bearish depending on GDP forecast. So they form a SUBSET of the sector/industry.
so how will working peeps/basic investors who have no idea about economic growth factors/GDP projections, understand or forecast which SUBSET in the sector will grow?
Do you expect them to be experts in the markets sectors and industries?
Then coming to stock selection after coming up with the IDEA , do you expect the working peeps/basic investors to know how to do valuations of stocks in their respective sectors/industries? e.g. Electric mobility - Do you expect the comman man to do complex DCF modeling to come up with valuation of all companies working on EVs?,
you are expecting common to do all the work to pick stocks , in which case what the difference between picking stocks using top-bottom approach rather than thematic approach. The former is much efficient and easier for investing.
I don’t see how small case/thematic investing can give any benefit to the working common man.
Its a ridiculous idea to even begin with.
Past performance does not guarantee future results.
What exactly is you point here?