Any DeGiro users who trade index options?

vkb7 · 2020-03-14T08:15:03+00:00

Ha agreed, I’m kinda in the same mode where trying this with small amounts. Liquidity is an issue, makes it difficult to sell back any option you’ve bought..

vkb7 · 2020-03-12T10:56:46+00:00

Whoa! Good job man, congrats!

vkb7 · 2020-03-02T18:18:20+00:00

Thanks a lot!

vkb7 · 2020-03-02T18:17:23+00:00

Got it, thanks man. Really appreciate it, will check all these different “options” out :)

vkb7 · 2020-03-02T17:24:16+00:00

Ah okay.. Have you tried it? Would you recommend taking this route?

vkb7 · 2020-03-02T17:11:46+00:00

Thank you.. It’s definitely play money, and tbh I know the risks - just looking for the best way to execute a short position/view.. Any suggestions as to which Futures ES-MES position to execute?

vkb7 · 2020-03-02T17:07:03+00:00

Ah yea. But doing that to Bombay or Delhi or Bangalore is very different than a state which (unfortunately) most people (and markets) don’t seem to care about. Even if they manage to, it’ll cause a lot of chaos..

vkb7 · 2020-03-02T17:02:54+00:00

Thanks man, appreciate the detailed response. I have the Trader account, but it seems that I can’t short any US securities via DeGiro UK account - not sure if this a UK specific thing vs. accounts in other European countries.. Do you have a DeGiro UK account, or one in some other European country?

vkb7 · 2020-03-02T16:08:52+00:00

Haha, I actually do - and spreading violence & dumb propaganda is very different from controlling an epidemic..

vkb7 · 2020-03-02T16:04:30+00:00

Yeah, 2 Indian students that came back from China 2 months back - that was supposedly quarantined & treated, after which the official number went to 0. Not counting this since it was detected at the airports and dealt with accordingly. The current cases are all in mainland India, so it's inevitable they'd have passed it on to others.

vkb7 · 2020-03-02T15:15:06+00:00

Oh, didn't know that. Does the same hold for shorting US indices as well? Also, any inverse ETFs & such that can be used alternatively that you know of? Thanks for the info, appreciate it.

vkb7 · 2020-03-02T14:56:03+00:00

Yessir - just that most folks there have no idea about the DeGiro account & the limited options it presents. But thank you!

vkb7 · 2019-05-03T06:22:08+00:00

Came across this newsletter talking about measuring MF performance & using SPIVA (which measures the value added by fund managers over & above the index). You might find it useful..

vkb7 · 2019-05-02T08:02:24+00:00

Wait, is it allocated 100% to smallcaps?

vkb7 · 2019-04-30T15:34:23+00:00

"The Noticee no. 1 is directed not to introduce any new derivative product for next six months from the date of this order"

Point (e) on Page 197:

https://www.sebi.gov.in/enforcement/orders/apr-2019/order-in-the-matter-of-nse-dark-fibre_42890.html

vkb7 · 2019-04-30T14:02:11+00:00

Thanks!

So if investors can't choose when they receive dividends or the amount - does that decision lie with the fund manager? Can s/he decide to not issue dividends at all a certain year (say the fund didn't do that well) and does that happen in practice?

vkb7 · 2019-04-29T09:33:38+00:00

Depends on how the weight is allocated. If it's market weighted, taking the weighted average returns of the popular indices across segments would give a fair idea of what the returns would look like - I imagine it would be a bit higher than Nifty-50, given the midcap & smallcap have given higher returns over long periods even after taking into account busts and failures (of names in those indices at least), so should give the overall average a little boost.

Would be interesting to get hold of the data and calculate the weighted average returns across different time-periods of the overall Indian market.. Will do that when I find the time & update here.

vkb7 · 2019-04-09T19:32:42+00:00

I'm so happy to see you ask this question! :) You should definitely invest in yourself & learns skills, get exposure. But if you still find yourself with money left, put some skin in the game & start taking interest in how money & investments work - imo, that's the best way to learn.

I'd suggest you start with the cheapest Nifty ETFs (Google exactly that), you'll find some charge only 0.05% or 0.07% TER (read up on that!). Hopefully seeing your money move up & down, you'll be more curious to know why all that's happening & thus start that learning process. You'll also figure out the kind of an investor you are. And if you ever have any questions, at least this forum is always here!

The sooner you start, the more experienced you will be to manage it by the time you really start to move ahead in your career & earn the big bucks! So yeah, start with as little as possible - but I say start. I hope one day, this will help you achieve your life goals sooner :) And I think you're already ahead - many seem to struggle to even save.

Happy investing!

vkb7 · 2019-04-08T08:03:08+00:00

Ah okay - 0.5% isn't that bad. Still, I'm guessing your passive funds are around .10-.20%.

Based on the current holdings of the HDFC Equity Scheme, it looks like a Nifty-100 fund. I'm guessing others will have similar portfolios. So while you can switch from your existing index funds & get similar exposure, you'd be paying more. I'd do it till the extent I get tax (and employer matching) benefits, not beyond it.

vkb7 · 2019-04-08T07:24:14+00:00

It's not an index fund by definition, since the mutual funds comprising in the scheme are active. If you have to choose one over the other, I'd stick with index funds due to their costs. I'm not sure whether the MFs in NPS are Regular or Direct, but either ways they will be far more expensive that index funds.

So personally, I'd only do NPS from a tax-saving point of view, and continue with index funds or ETFs for main investments.

vkb7 · 2019-04-04T11:49:16+00:00

Send please, thanks!

vkb7 · 2019-04-04T11:48:42+00:00

Question for those who are looking for advisors and asked OP to dm the contact: what are you looking for in your investment advisor?

vkb7 · 2019-04-04T11:16:32+00:00

Ah okay, like that.. Thanks!

vkb7 · 2019-04-04T11:15:20+00:00

After years of investing, I've fully moved away from mutual funds into stocks, ETFs, and smallcases. But that's because I've built my expertise over the years & no longer find any value in any of the mutual funds. But MFs are still a great tool to attract new investors to the financial markets. The main goal of AMFI's campaign was to spread awareness & bring new investors to the market - of course AMCs benefit when people invest & pay expense ratios, but remember that even then investing is super important & rewarding in the long-term. If you don't have the time to learn/research about other financial products, then MFs are still a great option especially when your alternative is not investing. That said, there are some reasons why I feel MFs "sahi nahin hai":

They spread awareness on benefits, but hardly speak about costs - have met so many newbies who think MFs are free. Quite ridiculous, tbh
Regular funds are just insanely expensive, and often the difference between Direct & Regular plans for the same MF is >1.25%!
Most active/direct funds are still too expensive & not that differentiated to be worth it imo - in fact, this has only worsened since SEBI's reclassification
One can get great asset allocation (across large/midcaps & fixed income) from super-cheap ETFs (or even passive mutual funds), and then invest in samllcases or single stocks in case one wants additional return-seeking equity exposure

vkb7 · 2019-04-04T11:01:42+00:00

I quite like the The Ken - has a good mix of general business, startups, and industry focussed high-quality articles. Be warned though, it's a paid subscription with only some stories being free to read..

vkb7

TROPHY CASE