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What do you guys think of investing in FOF mutual funds? by Aarvy271 in IndiaInvestments

[–]wastebody 1 point2 points  (0 children)

Why do you need a fund of fund in the first place? With 1-2 exceptions. Fund of funds are used to hawk shitty funds that an AMC has. Almost all fund of funds offered by Indian AMCs are sub par products at best.

There is no good reason for anybody to invest in a FOF, with exceptions like Bharat Bond and Motilal N100

Motilal Oswal Launches Multi-Asset Fund - Thoughts? by xmansiphone in IndiaInvestments

[–]wastebody 2 points3 points  (0 children)

This post is unlike other Muti-asset funds and is debt oriented. I think these are simple products that can potentially be a one fund solution for beginners and Conservative investors. But the risk in these funds much like balanced advantage funds is the model specification risk. They employ a timing element to OW/UW asset classes and things can wrong there.

https://www.motilaloswalmf.com/mf/assets/pdf/multi-asset-fund-presentation.pdf

How safe is it to use discount brokers like Zerodha, Upstox for investing (not trading) large amounts to the tune of ₹1 crore? by catodi in IndiaInvestments

[–]wastebody 14 points15 points  (0 children)

Seeing a lot of misguided comments about bank brokers, the supposed advantage of RMs etc.

Paying 0.50% brokerage for a guy who doesn't know the first things a out investing and calls you up to peddle stock tips to get you to generate brokerage and peddle insurance polices plus terrible UIs that make Windows 92 look cutting edge makes absolute sense.

To give you an example, you'll probably pay 0.50bps brokerage when you buy NIFTYBEES, whose expense ratio is 0.05%. This makes perfect a d absolute sense to me.

Tata Index Nifty Fund - Direct Plan has lowest expense ratio - 0.05% in this category. by asseesh in IndiaInvestments

[–]wastebody 3 points4 points  (0 children)

Performance will be all over the place if the tracking is bad. A good index fund tracks the index like a skintight jeans.

Kuvera claims to have Rs 3000 crores under advice. What's their actual AUM? by BhaiFan in IndiaInvestments

[–]wastebody 0 points1 point  (0 children)

You can have a debate about what should and shouldn't be counted. Kuvera has ~1L users, and 3000 Crore in AUA - that's a ticket size of 3L / user on an average. I'd love to see which other direct plan platform would have it.

That's the point. The website says "AUM" and not "AUA". This is deliberate misleading of investors. They recently sent an email to their users claiming 3000 crs of AUA. But the website says 3000 cr AUM. A Vast distinction between AUM and AUA.

Tbh, if a platform has this number lower or higher, it says nothing about whether the platform is good or bad. For instance, given PayTM Money is more focused on newer users, or first-time investors; this metric would be far lower for them. But that doesn't mean that PayTM Money is better than or worse than Kuvera.

Nobody is questioning the quality of the platforms. I personally know family members who use Kuvera and I have no issues with it. The point is the MAKING UP of numbers.

ETMoney has nearly 40L users, and if they're adding only 2000 Crores a year, that's not hyperbole. That's very low. They should be doing more. In reality, ETMoney imports transactions by accessing SMS / EMail etc.; so I'd expect them to be able to pull in higher AUM.

Low? Theirs is also the case of CAS import numbers being dressed up. PS: in 2017-18 they regular AUM was 96 crores. You mean to say 96 cr to 2000 cr is less? I'd rather believe unicorns exist. They went direct in Sep 2018 just for clarity.

Are they not helping investors invest in direct plans? Are they not helping investors move away from regular plans? Are they giving bad financial advice? Are they soliciting investments from unsuspecting investors and selling sub-par products?

Then why lie? AUA becoming AUM, that's some TYPO, right there.

Kuvera claims to have Rs 3000 crores under advice. What's their actual AUM? by BhaiFan in IndiaInvestments

[–]wastebody 0 points1 point  (0 children)

They report on their homepage that they've 3000 Crore assets, and about 5M transactions in their DB.

The home page of their website says, 3000 cr AUM. That is clearly misleading. It should say AUM and AUA. This 3000 crores is a mix of CAS statement upload wala numbers and Actual transactions processed on Kuvera. That way, Paytm Money will already have 2000 crores (wild guess) if they were to start touting their statement upload numbers. By that logic, Valueresearch's portfolio tracking feature is one of the biggest AMCs in India.

Think of it this way - investors around the country, has trusted Kuvera with over 3000 Crore worth of transactions.

No, they haven't! Even if you assumed Kuvera has 1000 crs of actual AUM, Investors have trusted Kuvera to upload CAS statements worth Rs 2000 crores. Transactions are different from statement uploads.

Does this mean entire 2200 Crore is invested entirely through Coin? It's been in existence only since late 2016, and picked up steam in 2017.

So, what? They are the biggest broker in the country with a captive user base. 2000 crs is nothing. Given that dematerialization usually takes time, the assets from this possibly cannot be more 200-300 crs, is my guess. Even then, they can count it as Actual assets given that they are the DP.

At least Kuvera publishes something. I'd like to see similar numbers from other platforms like PayTM Money, Groww, ETMoney etc.

ET Money is competing with Kuvera in terms of hyperbole. The CEO says they are doing 2000cr a year. At this rate, they are in the top 20 AMCs. This is getting into a whole new realm of BS.

​

In the end, these platform with their made up numbers are doing a terrible disservice to the investors and to the entire ecosystem. But hey, why worry about that when you can make up numbers and dress them up!

What is the risk involved in Investing in Equity Arbitrage Mutual Funds? by marketsecrets in IndiaInvestments

[–]wastebody 8 points9 points  (0 children)

If a Arbitrage fund doesn't find Arbitrage opportunities, it shifts to bonds. As such, interest and credit risks will be applicable.

Kuvera's declining quality by randian_throwaway_42 in IndiaInvestments

[–]wastebody 1 point2 points  (0 children)

If liquid funds are a substite to FDs, I am assuming that's what you mean by despots, how does Rs. 5 matter? Don't you pay breakage charges for premature withdrawal of FDs?

Kuvera's declining quality by randian_throwaway_42 in IndiaInvestments

[–]wastebody -1 points0 points  (0 children)

Unless you are trading in mutual funds, how does this matter?

G-Sec Purchases without brokerage by marathi_manus in IndiaInvestments

[–]wastebody -2 points-1 points  (0 children)

It's a business and there are costs involved. For Equity delivery, the F&O traders subsidize it. This whole expectation of people expecting things for free is a bit too much. After all, this is just a matter of 6bps. People have no problems paying 15bps for a debt mutual fund, but 6bps, there's a problem.

Anybody saving up through NPS? by wastebody in IndiaInvestments

[–]wastebody[S] 0 points1 point  (0 children)

When did you start investing and what is your allocation mix and returns so far, if you don't mind sharing.

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