Discover and read the best of Twitter Threads about #DownsideProtection
Most recents (4)
Lot of #AMCs come up with different ideas, themes, sectors.
These are demands from #Investors as they have done well in recent past.
AMCs are manufacturers & will offer what is in demand.
Final choice to say YES or NO lies entirely with Investors based on their #NEEDs
These are demands from #Investors as they have done well in recent past.
AMCs are manufacturers & will offer what is in demand.
Final choice to say YES or NO lies entirely with Investors based on their #NEEDs
What should investors choose and what should they ignore. A point by point guide on where and why to invest in certain #themes, #MarketCap bias, #Sectors, #AssetClasses etc.
What should be criteria for these selections and what should guide them to resist from Investing?
What should be criteria for these selections and what should guide them to resist from Investing?
Lets start with #Debt:
Keep enough money as 1 year of your expenses as #EmergencyFunds in #LiquidSchemes
You already have enough exposure to debt as:
1. #PPF
2. #TaxFreeBonds
3. #FDs
No need for separate debt allocation if you are investing thru #AssetAllocation (AA) or #DAAF
Keep enough money as 1 year of your expenses as #EmergencyFunds in #LiquidSchemes
You already have enough exposure to debt as:
1. #PPF
2. #TaxFreeBonds
3. #FDs
No need for separate debt allocation if you are investing thru #AssetAllocation (AA) or #DAAF
From Jan 2018 to peak of #EquityMarkets on 18th Oct 2021, #SmartInvesting of @IamMisterBond underperformed #BuyAndHold only against #NIFTY50 but beat NIFTY Mid and Small Cap 100 by a big margin.
Post that, markets have been #volatile with downward bias
Post that, markets have been #volatile with downward bias
Results of Smart Investing v/s Buy & Hold under all Market Caps is for all to see - with 1) lower volatility, 2) beating results of Buy & Hold by big margins
#SmartInvesting switched to Equity in Mar 20 after downside protection and switched back to DAAF by Jul 20
#SmartInvesting switched to Equity in Mar 20 after downside protection and switched back to DAAF by Jul 20
3) Values under Buy & Hold have gone down substantially from Oct 2021 to Feb 2022 v/s values going down marginally under Smart Investing due to being in #DAAF, 4) Smart Investing portfolios better placed at current juncture to take advantage of market #volatility v/s Buy & Hold
#Goal Based Investing vs #PortfolioProtection Debate: Sharing my response to that debate: 👇
I have a totally different take in this Goal based investing and communication with Investors.
I have a totally different take in this Goal based investing and communication with Investors.
My 35 years of experience is showing me totally diametrically opposite conclusion to this. Only my observations, please ignore if you do not agree:
My belief is that Goal based investing is only good on paper and may be to get some discipline in Investment habits.
My belief is that Goal based investing is only good on paper and may be to get some discipline in Investment habits.
But unfortunately most Investors do not follow it. For example at current juncture, when they have existential crisis, how many will continue on the path of goal based investing? Many have stopped SIPs, many have withdrawn and redeemed.
What happens to their Goals now??
What happens to their Goals now??
Advisors can actually build their entire MF practice by only selling #DAAF and still give the best Investment Experience.
DAAF takes care of:
1. #AssetAllocation
2. Value based investing
3. BuyLow-SellHigh - profit booking
4. #DownsideProtection
5. Debt with Equity Taxation
DAAF takes care of:
1. #AssetAllocation
2. Value based investing
3. BuyLow-SellHigh - profit booking
4. #DownsideProtection
5. Debt with Equity Taxation
6) No need to Time the Markets
7) No need for Exit strategy
8) over longer periods, outperforms Buy & Hold
9) In Bullish period -participates in Upside
10) Bearish Periods - protects Downside
11) stagnant periods still generates returns
12) use it as SIP, STP, Lumpsum
7) No need for Exit strategy
8) over longer periods, outperforms Buy & Hold
9) In Bullish period -participates in Upside
10) Bearish Periods - protects Downside
11) stagnant periods still generates returns
12) use it as SIP, STP, Lumpsum
That's why I call it Aloo Ki Sabzi in Investment Thali:
1) can fit in any strategy
2) can be invested at any phase of markets
3) can be recommended for Senior citizens for regular cash flow thru SWP
4) ideal for any age group
1) can fit in any strategy
2) can be invested at any phase of markets
3) can be recommended for Senior citizens for regular cash flow thru SWP
4) ideal for any age group
