[ashvek3141]

Pardon my question as I'm not quite in sync with the recent updates with MF's. - Why is the Quant MF on a 'serious' decline these days?

Quant Tax saver fund was a top performing fund in my portfolio of 6 funds. However, off late it has slipped to 4th which is alarming!

Same is the case with Quant Multi asset fund.

[DigitalOne]

Originally Posted by ashvek3141

Pardon my question as I'm not quite in sync with the recent updates with MF's. - Why is the Quant MF on a 'serious' decline these days?

Quant takes concentrated bets, and more recently their portfolio is very heavy on Reliance and Adani shares. Even their so-called Small Cap fund has ~16% Reliance stocks (Reliance Industries and Jio Financials) and ~5% Adani stocks. So their performance is closely tied to the stock performance of these two groups. Just see all Quant funds 1 week rank vs their 1/3/6 month ranks .

[ashvek3141]

Originally Posted by DigitalOne

Quant takes concentrated bets, and more recently their portfolio is very heavy on Reliance and Adani shares. Even their so-called Small Cap fund has ~16% Reliance stocks (Reliance Industries and Jio Financials) and ~5% Adani stocks. So their performance is closely tied to the stock performance of these two groups. Just see all Quant funds

Should this ring some bells? (Read=sell off) I know there was this phase a few months ago during the enquiry from SEBI; but I think even then it had not dropped so much. And hence I held onto these funds even then. But his time the drop seems too much to digest.

[DigitalOne]

Originally Posted by ashvek3141

Should this ring some bells? (Read=sell off) I know there was this phase a few months ago during the enquiry from SEBI; but I think even then it had not dropped so much. And hence I held onto these funds even then. But his time the drop seems too much to digest.

Personally, I have stopped SIPs in 2 Quant funds (Quant Absolute fund, and Quant Momentum Fund). These funds form only a small % of my MF portfolio so will wait and watch the funds for a few more months before taking a redemption decision.

[DaptChatterjee]

Originally Posted by ashvek3141

Pardon my question as I'm not quite in sync with the recent updates with MF's. - Why is the Quant MF on a 'serious' decline these days?

Quant Tax saver fund was a top performing fund in my portfolio of 6 funds. However, off late it has slipped to 4th which is alarming!

Same is the case with Quant Multi asset fund.

That's what happens to all high flying AMC's. Look at the 1/2 year performances of Mirae/Axis/PGIM etc. On the other hand, AMC's like HDFC, Nippon which underperformed for years, have done very well in the last couple of years. Active funds will go trough these cycles of underperformance and over achievement vis-à-vis benchmark.

Of course, Quant was also raided by SEBI a few months back (check previous posts in this thread) and since then, have been trying to play it safe.

[Mr.Ogre]

Hi Everyone, This is a question for NRI's who are investing in Indian markets. I regularly invested in Mutual Funds through SIPs and was happy with the returns while I was in India. I moved out since more than 6 years now and I was keen on investing in Mutual Funds again through SIPs.

However, the recent announcement of 12.5% LTCG (long term capital gain) tax has kind of put me in a dilemma. I try to hold on to my investments for a long period and only break them when I am in need.

Along with INR depreciating against USD, AUD, Euro annually, it no longer looks like a viable option. Suddenly the investments in India don't look so lucrative compared to the options we have here in Australia, but then I was never good at Maths. Would be grateful if you could share your thoughts.

@mods, please move this to the investment thread, if it makes more sense there.

[thoma]

I track all my funds through valueresearchonline.com, but of late the site has become ad heavy and made analytics paid.

Which is a good alternative to view and analyse all our funds?

[SmartCat]

Originally Posted by thoma

I track all my funds through valueresearchonline.com, but of late the site has become ad heavy and made analytics paid. Which is a good alternative to view and analyse all our funds?

www.morningstar.in

MorningStar is the "original" while valueresearchonline is the "copy".
https://en.wikipedia.org/wiki/Morningstar,_Inc.

[vaibhav_a_a]

"SIP stoppage ratio climbs to third-highest level ever in November" - this is in History. The highest was May 2024 and before that May 2020.

Article here : https://www.moneycontrol.com/news/bu...-12887292.html

[Dry Ice]

Originally Posted by Mr.Ogre

…
Along with INR depreciating against USD, AUD, Euro annually, it no longer looks like a viable option. Suddenly the investments in India don't look so lucrative compared to the options we have here in Australia, but then I was never good at Maths. Would be grateful if you could share your thoughts.

@mods, please move this to the investment thread, if it makes more sense there.

Plenty of overseas funds still invest in India, so there must be some money to be made in-spite of the challenges you mention.

You can invest through such funds if you don’t want to invest directly. As an example, you can buy a fund like this which has 23% of its holdings in Indian companies. Should help with diversification and simplify tax matters too.

[SmartCat]

Originally Posted by Mr.Ogre

Along with INR depreciating against USD, AUD, Euro annually, it no longer looks like a viable option. Suddenly the investments in India don't look so lucrative compared to the options we have here in Australia, but then I was never good at Maths. Would be grateful if you could share your thoughts.

You are mostly right. When we look at NIFTY returns in USD, it doesn't look that great. In the past 12 years, NIFTY went up 5x from 5000 to 24000:



But when we account for Rupee depreciation against USD, NIFTY went up just 3x. This is denoted by a separate index called NIFTY 50 USD:



But S&P500 has gone up 6x times in USD terms. So any investor would have been better off investing S&P500 than NIFTY 50:



However, we need to dig up the old investing adage about 'past performance is not a reflection of future returns'. The outperformance of S&P500 in the past decade might be an aberration. Because if we look at even longer time frame:

- NIFTY 50 has returned 11% to 12% pa in dollar terms
- S&P 500 has returned 8% to 9% pa in dollar terms

[Naetik30]

Originally Posted by SmartCat

However, we need to dig up the old investing adage about 'past performance is not a reflection of future returns'. The outperformance of S&P500 in the past decade might be an aberration. Because if we look at even longer time frame:

- NIFTY 50 has returned 11% to 12% pa in dollar terms
- S&P 500 has returned 8% to 9% pa in dollar terms

A better option for investors would be to have both India and US stock investments. I plan to keep about 70% in Indian MFs and 30% is US ETFs. With the tools available today, it is a breeze to do this.

[07CR]

I am quite new to the stock market world, and came across the SWP recently and I am fascinated to it. However, I also came across one video which highlights the dangers associated with SWP.

https://youtu.be/ooJOJUKGUIA?feature=shared

Excerpts from the video-

1. Currently Indian stock market is rising. But what if we are at the absolute top at the moment. What if you invest a huge amount as a SWP (even in an index fund), and if the market crashes and doesn't reach the same level in next 20 years!
   
2. The video gives examples of Nikkei Index crash of 1990's and SSE index crash of 2007. Nikkei has recently recovered, SSE is still in red compared to 2007.
   
3. Do the experts here believe India too might reach a similar situation and SWP may not be the right way forward?

PS- I am 30 currently and hope to accumulate a 1 CR. worth of amount by 2031, and I was intending to put this in a Index fund SWP. That said, I won't be exactly using SWP the way it is, but withdraw just about 30K per month as per my convenience and not on a fix date (split SWP in three, and withdraw less than 1.25L PA from each, for 0 tax). All this while I continue my IT job for next foreseeable 10-15 years atleast.

[kpkeerthi]

The primary objective of investing in index funds is to enable investors to benefit from market returns, whether positive or negative. If the market falls, investors experience the same decline, and if it rises, they enjoy the same growth. This is an inherent aspect of index fund investing.

Ignore SWP. Simply redeem your investments manually whenever you need funds. This would be more tax friendly as you wouldn't be taking money you wouldn't need from the kitty.

[Naetik30]

Originally Posted by 07CR

I am quite new to the stock market world, and came across the SWP recently and I am fascinated to it. However, I also came across one video which highlights the dangers associated with SWP.

SWP as a use case is best for retirees. It is meant for those who hold the necessary funds for retirement - say 35x their annual expenses at about age 60. Then withdraw 3% every year of the fund. Theoretically this should last about 30 more years (or until the investor has turned 90 years and hopefully the end of their life).

In the case you have stated - I dont think SWP works well. If you have specific goals, just plan to move your funds from equity fund to debt or FDs ahead of these goals (atleast 2 years ahead for time critical goals - example education).