Our latest podcast episode is here, and it's all about exploring the different ways investors make money in the market. From thrilling arbitrage strategies to the art of short-term trading, we'll cover it all in a language that even your neighbour's fish could understand (well, almost!). But that's not all—our experts will take you on a journey through long-term fundamental investing and quantitative approaches too. Expect some fascinating stories, like the infamous LTCM blow-up, and how best investors (&amp; trades) made their fortunes. We'll also unravel the logic behind the elusive VC's hunt for 50x returns and how even "value stocks" need a dash of momentum. So, whether you're an investing enthusiast or just curious about the market's mysterious ways, you won't want to miss this one.  References 00:38 What do you think about the new all-time high? How do you view different types of investing strategies in the market and how to make money from these strategies? 24:27 The problem with peoples expectations: When I say stock markets do 12%, people expect this to be linear. 27:00 Concept of Expectancy 33:29 Problem in arbitrage is competition, so you need to lever yourself up 38:21 Option volatility trading - sell options expiring in 2 days and make the decay 46:32 When VC wins they need to win huge 49:50 Nifty monthly returns - how do quant strategies do? 56:52 We have just hit all time high. Based on the past data, how long can this good time potentially last? Which one is your favourite investing strategy? Liked the episode? Just tweet to us at @capitalmind_in and let us know. That's all we need to keep going!

Our latest podcast episode is here, and it's all about exploring the different ways investors make money in the market. From thrilling arbitrage strategies to the art of short-term trading, we'll cover it all in a language that even your neighbour's fish could understand (well, almost!). But that's not all—our experts will take you on a journey through long-term fundamental investing and quantitative approaches too. Expect some fascinating stories, like the infamous LTCM blow-up, and how best investors (&amp; trades) made their fortunes. We'll also unravel the logic behind the elusive VC's hunt for 50x returns and how even "value stocks" need a dash of momentum. So, whether you're an investing enthusiast or just curious about the market's mysterious ways, you won't want to miss this one. References 00:38 What do you think about the new all-time high? How do you view different types of investing strategies in the market and how to make money from these strategies? 24:27 The problem with peoples expectations: When I say stock markets do 12%, people expect this to be linear. 27:00 Concept of Expectancy 33:29 Problem in arbitrage is competition, so you need to lever yourself up 38:21 Option volatility trading - sell options expiring in 2 days and make the decay 46:32 When VC wins they need to win huge 49:50 Nifty monthly returns - how do quant strategies do? 56:52 We have just hit all time high. Based on the past data, how long can this good time potentially last? Which one is your favourite investing strategy? Liked the episode? Just tweet to us at @capitalmind_in and let us know. That's all we need to keep going!

Stock market returns are lumpy. Get used to it!

Welcome back to another episode of our podcast, where we dive deep into the world of finance and investment. In today's episode, we will be exploring the fascinating realm of mutual fund costs and SEBI's recent proposals to bring them down. As the saying goes, "The devil is in the details," and when it comes to investing, understanding the various expenses involved is crucial for making informed decisions. In this captivating episode, we will dissect SEBI's latest discussion paper on Mutual Fund TER (Total Expense Ratio), which shed light on the inner workings of mutual fund costs and the need for change. We'll embark on a journey led by our expert hosts, Deepak &amp; Shray, who will unravel the complexities of the system and explore the potential implications of SEBI's proposals. Get ready to gain valuable insights and answers to burning questions.  What is the Total Expense Ratio (TER) of a mutual fund, and what does it include and exclude? Why does SEBI propose changes in TER, and how will it affect mutual fund investors? How do large distributors exploit the system, and what measures can be taken to address this issue? Can tweaking TERs alone make the mutual fund industry 10x bigger, or are there other critical factors to consider? What innovative avenues could mutual funds explore to earn higher TER while providing value to investors?  Tell us on twitter @capitalmind_in on how did you like this episode. Your feedback means the world to us!  Show Notes &amp; References 02:00 Thoughts on the recent discussion paper by SEBI on Mutual Fund TERs 10:30 SEBI is saying "You are making too much money", reduce fees 19:25 Largest India equity scheme is charging the maximum fees possible 31:30 Limited Purpose Trading membership for AMCs to trade directly on the exchange 43:00 Why should a big fund house have the ability to charge more on a new scheme? 48:00 Performance based AUM through sandbox 53:00 How do you make the mutual fund industry 10X bigger?

Welcome back to another episode of our podcast, where we dive deep into the world of finance and investment. In today's episode, we will be exploring the fascinating realm of mutual fund costs and SEBI's recent proposals to bring them down. As the saying goes, "The devil is in the details," and when it comes to investing, understanding the various expenses involved is crucial for making informed decisions. In this captivating episode, we will dissect SEBI's latest discussion paper on Mutual Fund TER (Total Expense Ratio), which shed light on the inner workings of mutual fund costs and the need for change. We'll embark on a journey led by our expert hosts, Deepak &amp; Shray, who will unravel the complexities of the system and explore the potential implications of SEBI's proposals. Get ready to gain valuable insights and answers to burning questions. <ol> <li>What is the Total Expense Ratio (TER) of a mutual fund, and what does it include and exclude?</li> <li>Why does SEBI propose changes in TER, and how will it affect mutual fund investors?</li> <li>How do large distributors exploit the system, and what measures can be taken to address this issue?</li> <li>Can tweaking TERs alone make the mutual fund industry 10x bigger, or are there other critical factors to consider?</li> <li>What innovative avenues could mutual funds explore to earn higher TER while providing value to investors?</li> </ol> Tell us on twitter <a href="https://twitter.com/capitalmind_in" rel="nofollow" target="_blank">@capitalmind_in</a> on how did you like this episode. Your feedback means the world to us! Show Notes &amp; References 02:00 Thoughts on the recent discussion paper by SEBI on Mutual Fund TERs 10:30 SEBI is saying "You are making too much money", reduce fees 19:25 Largest India equity scheme is charging the maximum fees possible 31:30 Limited Purpose Trading membership for AMCs to trade directly on the exchange 43:00 Why should a big fund house have the ability to charge more on a new scheme? 48:00 Performance based AUM through sandbox 53:00 How do you make the mutual fund industry 10X bigger?

What Lies Behind Mutual Fund Expense Ratios: SEBI’s Call for Transparency in TERs

"If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck", goes the saying. Arbitrage mutual funds are actually taxed as equity funds but they actually behave as debt funds. And this tax arbitrage of arbitrage funds is what the regulators may be looking to fix. In light of this, we have our latest episode of the Capitalmind Podcast, where we dive into the intriguing world of arbitrage mutual funds, also known as arb funds. In this shorter episode, our hosts, Deepak and Shray, explores the role these funds play in your investment portfolio and delves into the impact of recent changes in debt mutual fund taxation on arbitrage funds. Here's a sneak peek of what you can expect from this episode  The Role of Arbitrage Funds: Discover the peculiar position these funds hold, being described as equity funds but offering debt-like returns.  Taxation Changes and Their Effects: Explore how the recent changes in the income tax code could potentially affect arbitrage funds. Deepak shares his insights on the first and second-order effects of these tax changes and highlights the potential short-term buying opportunities that may arise. Risk-Free and Low-Risk Investment Options: Understand the investment landscape going forward in the likely new tax environment. Discover what alternative options exist for risk-free or low-risk investments in light of these changes.  Here are five key questions that will be answered in this episode  What role do arbitrage funds play in your investment portfolio? How will recent changes in debt mutual fund taxation impact arbitrage funds? What are the first and second-order effects of tax changes on arb funds? What risk-free or low-risk investment options are available in the likely new tax environment? How significant is the presence of arbitrage funds in the stock market, and what does it mean for overall market volumes?  Join us as we unravel the complexities of arbitrage mutual funds and gain a deeper understanding of their implications for your investment strategy.  Show Notes &amp; References 01:00 What do arbitrage funds (arb funds) do and where they fit in your investment portfolio? 08:30 Why didn’t arb funds become the FD replacement? 12:30 How big are arbitrage funds and what does that mean as a percentage of total volumes/positions on the stock market? 18:45 Arbitrage Funds are a huge part of our market and it's a problem. Why? 21:30 First and Second order effects of taxing arb funds like debt 34:00 What are the advice or takeaways? If you have any feedback, ideas for future topics, or questions, we'd love to hear from you. Send us an email at podcast[at]capitalmind[dot]in. For those seeking professional wealth management services for portfolios exceeding 50 lakh, visit Capitalmind Wealth. 

"If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck", goes the saying. Arbitrage mutual funds are actually taxed as equity funds but they actually behave as debt funds. And this tax arbitrage of arbitrage funds is what the regulators may be looking to fix. In light of this, we have our latest episode of the Capitalmind Podcast, where we dive into the intriguing world of arbitrage mutual funds, also known as arb funds. In this shorter episode, our hosts, Deepak and Shray, explores the role these funds play in your investment portfolio and delves into the impact of recent changes in debt mutual fund taxation on arbitrage funds. Here's a sneak peek of what you can expect from this episode <ul> <li>The Role of Arbitrage Funds: Discover the peculiar position these funds hold, being described as equity funds but offering debt-like returns. </li> <li>Taxation Changes and Their Effects: Explore how the recent changes in the income tax code could potentially affect arbitrage funds.</li> <li>Deepak shares his insights on the first and second-order effects of these tax changes and highlights the potential short-term buying opportunities that may arise.</li> <li>Risk-Free and Low-Risk Investment Options: Understand the investment landscape going forward in the likely new tax environment. Discover what alternative options exist for risk-free or low-risk investments in light of these changes.</li> </ul> Here are five key questions that will be answered in this episode <ul> <li>What role do arbitrage funds play in your investment portfolio?</li> <li>How will recent changes in debt mutual fund taxation impact arbitrage funds?</li> <li>What are the first and second-order effects of tax changes on arb funds?</li> <li>What risk-free or low-risk investment options are available in the likely new tax environment?</li> <li>How significant is the presence of arbitrage funds in the stock market, and what does it mean for overall market volumes?</li> </ul> Join us as we unravel the complexities of arbitrage mutual funds and gain a deeper understanding of their implications for your investment strategy. Show Notes &amp; References 01:00 What do arbitrage funds (arb funds) do and where they fit in your investment portfolio? 08:30 Why didn’t arb funds become the FD replacement? 12:30 How big are arbitrage funds and what does that mean as a percentage of total volumes/positions on the stock market? 18:45 Arbitrage Funds are a huge part of our market and it's a problem. Why? 21:30 First and Second order effects of taxing arb funds like debt 34:00 What are the advice or takeaways? If you have any feedback, ideas for future topics, or questions, we'd love to hear from you. Send us an email at podcast[at]capitalmind[dot]in. For those seeking professional wealth management services for portfolios exceeding 50 lakh, visit <a href="https://get.capitalmind.in/wealth" rel="nofollow" target="_blank">Capitalmind Wealth</a>.

How arbitrage funds might have systemic risk on a tax-rule change

"Taxation is the price we pay for civilisation," as the saying goes. But what happens when the price tag keeps going up? You may have thought you understood the friendly taxation system, until a new rule comes up that leaves you feeling like you've been sucker-punched. That's what recently happened when the government took away the tax efficiency of debt mutual funds and increased taxation. Suddenly, investors were left wondering how this would impact their investments and whether they needed to change their strategies. In this episode of our podcast, Deepak and Shray delve into the conversation around the new taxation rules for debt funds. They ask the tough questions that many investors are likely asking themselves such as:  whether taxation should be a factor when investing in equities, what to do with existing debt funds, whether foreign investing is still exciting after all the taxes.  But it's not all doom and gloom. They also explore other investment options such as MLDs, Gold, Real Estate, Startups, AIFs, and ETFs. Taxes are indeed taxing. But who knows, maybe someday Pink Floyd will come up with a new hit single titled "We don't need no TAXES." Until then, tune in to our podcast to stay informed and keep your investing game strong. Don't miss out on the show notes and references for this episode, where you'll find timestamps for each topic covered. So grab a drink, relax, and join us as we explore the fascinating and ever-changing world of investing and taxation.  Show Notes &amp; References  Click here for the Google Sheet 8:50 Now all debt instruments are taxed similarly, isn't it now a fair system? 18:45 What should I do with my existing debt funds? 27:00 Should taxation be a factor while investing in equities? 33:00 In stocks, should you sell underperforming stocks and move to other stocks? 36:00 What about  MLDs, Gold &amp; Real Estate. 53:00 How investments in startups are taxed? 56:00 What about AIFs and ETFs? 1:05:30 Is foreign investing still exciting after all the taxes? 1:09:00 Final thoughts

"Taxation is the price we pay for civilisation," as the saying goes. But what happens when the price tag keeps going up? You may have thought you understood the friendly taxation system, until a new rule comes up that leaves you feeling like you've been sucker-punched. That's what recently happened when the government took away the tax efficiency of debt mutual funds and increased taxation. Suddenly, investors were left wondering how this would impact their investments and whether they needed to change their strategies. In this episode of our podcast, Deepak and Shray delve into the conversation around the new taxation rules for debt funds. They ask the tough questions that many investors are likely asking themselves such as: <ul> <li>whether taxation should be a factor when investing in equities,</li> <li>what to do with existing debt funds,</li> <li>whether foreign investing is still exciting after all the taxes.</li> </ul> But it's not all doom and gloom. They also explore other investment options such as MLDs, Gold, Real Estate, Startups, AIFs, and ETFs. Taxes are indeed taxing. But who knows, maybe someday Pink Floyd will come up with a new hit single titled "We don't need no TAXES." Until then, tune in to our podcast to stay informed and keep your investing game strong. Don't miss out on the show notes and references for this episode, where you'll find timestamps for each topic covered. So grab a drink, relax, and join us as we explore the fascinating and ever-changing world of investing and taxation. Show Notes &amp; References <a href="https://docs.google.com/spreadsheets/d/1In3w0pseexACFUbTEeEe3CDp2pKdcpyRwoMjdwCRtwA/edit?usp=sharing" rel="nofollow" target="_blank"> Click here for the Google Sheet</a> 8:50 Now all debt instruments are taxed similarly, isn't it now a fair system? 18:45 What should I do with my existing debt funds? 27:00 Should taxation be a factor while investing in equities? 33:00 In stocks, should you sell underperforming stocks and move to other stocks? 36:00 What about  MLDs, Gold &amp; Real Estate. 53:00 How investments in startups are taxed? 56:00 What about AIFs and ETFs? 1:05:30 Is foreign investing still exciting after all the taxes? 1:09:00 Final thoughts

[Podcast] Here’s why taxes impact your investing decisions

“A market without bears would be like a nation without a free press. There would be no one to criticize and restrain the false optimism that always leads to disaster” - Bernard Baruch Short selling is mostly misunderstood and often demonized. Quite understandable, it's difficult to put your head around a concept that involves selling something that you don’t already own. But, it’s not as sinister as it is made out to be. Markets have enough checks and balances to accommodate short sellers and maintain their balance. Recently, we saw Adani group stocks come under attack by a US-based short seller which resulted in the marketcap of the group falling more than 50% within a month. This sparked a discussion on the concept of short selling. We're not going to talk about the specifics of this short by Hindebug. Instead, in this episode, we will talk about the nuances of short selling, their impact on the market, and dive deeper into how the whole thing works. Join, Deepak &amp; Shray, as they talk about:  How does short selling work? Is short selling always to bring down a stock? The operational aspects of short selling in India and the US? Examples of different short trades &amp; how they played out Which market players, except short sellers, also short stocks?   Show Notes &amp; References 1:10 What is short selling 5:15 Why people would do short selling? 11:30 Are HFTs also market makers? Or speculators? 13:30 Paul Tudor Jones and the 80s crash 19:30 How do Indians short a stock? 23:00 How do US traders generally short a stock? 33:00 NSEL fiasco 42:00 Do arbitrage mutual funds also short sells stocks? 45:00 How does a foreign fund short an Indian stock? 47:00 Should short selling be illegal? 49:00 Can a PMS (like us) go short and benefit from such trades? 54:30 The thing called "short squeeze" and stories from far &amp; recent past

“A market without bears would be like a nation without a free press. There would be no one to criticize and restrain the false optimism that always leads to disaster” - Bernard Baruch Short selling is mostly misunderstood and often demonized. Quite understandable, it's difficult to put your head around a concept that involves selling something that you don’t already own. But, it’s not as sinister as it is made out to be. Markets have enough checks and balances to accommodate short sellers and maintain their balance. Recently, we saw Adani group stocks come under attack by a US-based short seller which resulted in the marketcap of the group falling more than 50% within a month. This sparked a discussion on the concept of short selling. We're not going to talk about the specifics of this short by Hindebug. Instead, in this episode, we will talk about the nuances of short selling, their impact on the market, and dive deeper into how the whole thing works. Join, Deepak &amp; Shray, as they talk about: <ul> <li>How does short selling work?</li> <li>Is short selling always to bring down a stock?</li> <li>The operational aspects of short selling in India and the US?</li> <li>Examples of different short trades &amp; how they played out</li> <li>Which market players, except short sellers, also short stocks?</li> </ul> Show Notes &amp; References 1:10 What is short selling 5:15 Why people would do short selling? 11:30 Are HFTs also market makers? Or speculators? 13:30 Paul Tudor Jones and the 80s crash 19:30 How do Indians short a stock? 23:00 How do US traders generally short a stock? 33:00 NSEL fiasco 42:00 Do arbitrage mutual funds also short sells stocks? 45:00 How does a foreign fund short an Indian stock? 47:00 Should short selling be illegal? 49:00 Can a PMS (like us) go short and benefit from such trades? 54:30 The thing called "short squeeze" and stories from far &amp; recent past

How does short selling work?

Things escalate and hit the fan very quickly in banking. It's fascinating to see how banks go belly-up for the same fundamental reasons but in an entirely unique way each time. It's like being served the same romantic comedy story again and again with different actors, locations, and songs. But, these banking crisis stories are not as enjoyable and they hurt real people financially and emotionally. In this episode, we discuss the crisis at Silicon Valley Bank. How this seemingly robust, conservative, bank with $180 billion in deposits tumbled down in just a couple of days. All was good with the Silicon Valley Bank until, one day, it wasn't. NO, there was no accounting scam. This isn't like Enron.  NO, there wasn't any irresponsible speculative betting. This isn't like Lehman.  This time it's a different story. But, with the same result.  Listen in as Deepak and Shray tell you everything you need to know about the Silicon Valley Bank crisis:   What actually happened?  What could SVB have done differently starting a year ago? Understand how rising interest rates affect the business of banking What is going to happen next? Lessons for the future  If you enjoy Capitalmind Podcast, tweet to us @capitalmind_in and let us know. It doesn't take more than 2 minutes and is the fuel that keeps us going.

Things escalate and hit the fan very quickly in banking. It's fascinating to see how banks go belly-up for the same fundamental reasons but in an entirely unique way each time. It's like being served the same romantic comedy story again and again with different actors, locations, and songs. But, these banking crisis stories are not as enjoyable and they hurt real people financially and emotionally. In this episode, we discuss the crisis at Silicon Valley Bank. How this seemingly robust, conservative, bank with $180 billion in deposits tumbled down in just a couple of days. All was good with the Silicon Valley Bank until, one day, it wasn't. NO, there was no accounting scam. This isn't like Enron.  NO, there wasn't any irresponsible speculative betting. This isn't like Lehman.  This time it's a different story. But, with the same result.  Listen in as Deepak and Shray tell you everything you need to know about the Silicon Valley Bank crisis:  <ul> <li>What actually happened? </li> <li>What could SVB have done differently starting a year ago?</li> <li>Understand how rising interest rates affect the business of banking</li> <li>What is going to happen next?</li> <li>Lessons for the future</li> </ul> If you enjoy Capitalmind Podcast, tweet to us <a href="https://twitter.com/capitalmind_in" rel="nofollow" target="_blank">@capitalmind_in</a> and let us know. It doesn't take more than 2 minutes and is the fuel that keeps us going.

What led to the crisis at Silicon Valley Bank (SVB)?

Anyone who thinks financial accounting is boring hasn't seen the creativity in some of the financial statements. Not just in India but across the world. In this podcast, Deepak and Shray discuss the shenanigans of financial accounting while referencing various case studies from the business world. This discussion is important because "new age" businesses in India have started reporting "adjusted" accounting statements along with standard reports. While we do understand the need for "adjusted" metrics to gauge the health of a business. Especially when the nature of business is unconventional and may not be represented well by the existing reporting system. But more often than not, such adjustments are used for misguiding investors.  Listen in to figure out:   Why do businesses need to report adjusted earnings? How cheques, affiliates, GMVs, and ESOPs are used for creative accounting?  If such reporting is legal, why should investors care? How do you recognize whether adjustments are real or not?  Show notes and time stamps 1:50   - What’s the big issue with showing adjusted revenues? 10:20 - Shenanigans of adjusting revenues go back to the days of AOL (1990s) 13:45 - Argument of using the contribution margin 23:00 - How do “adjusted” numbers mislead stakeholders? 27:30 - Examples of creatively using metrics to manipulate numbers? 52:40 - VCs &amp; Investors want “adjusted” metrics to understand business performance 1:00:00 - How to recognize if adjustments are real or not?

Anyone who thinks financial accounting is boring hasn't seen the creativity in some of the financial statements. Not just in India but across the world. In this podcast, Deepak and Shray discuss the shenanigans of financial accounting while referencing various case studies from the business world. This discussion is important because "new age" businesses in India have started reporting "adjusted" accounting statements along with standard reports. While we do understand the need for "adjusted" metrics to gauge the health of a business. Especially when the nature of business is unconventional and may not be represented well by the existing reporting system. But more often than not, such adjustments are used for misguiding investors.  Listen in to figure out:  <ul> <li>Why do businesses need to report adjusted earnings?</li> <li>How cheques, affiliates, GMVs, and ESOPs are used for creative accounting? </li> <li>If such reporting is legal, why should investors care?</li> <li>How do you recognize whether adjustments are real or not?</li> </ul> Show notes and time stamps 1:50   - What’s the big issue with showing adjusted revenues? 10:20 - Shenanigans of adjusting revenues go back to the days of AOL (1990s) 13:45 - Argument of using the contribution margin 23:00 - How do “adjusted” numbers mislead stakeholders? 27:30 - Examples of creatively using metrics to manipulate numbers? 52:40 - VCs &amp; Investors want “adjusted” metrics to understand business performance 1:00:00 - How to recognize if adjustments are real or not?

The problem with "adjusted" financial accounts

Stockbroking is a unique business enabling millions of people to trade billions of dollars of stocks with unknown counterparties. All trades, in this highly regulated ecosystem, are executed seamlessly, settled correctly, and recorded meticulously. It’s fascinating to see how far India has come in making this ecosystem world-class and in some cases, the best in the world. In this podcast, Deepak and Shray discuss the nuances of stock broking and how proposed regulations will impact the stock broking industry. They discuss, in detail, the role of stock brokers, regulators (SEBI), clearing corporations, exchanges, and investors. As an investor, how brokers are regulated doesn’t impact you directly. Yet, it is important to figure out what happens to your money when you click that buy/sell button on your app. Listen in as we talk about:  How does stock broking work in its present form? What are the new regulations proposed? How will these regulations impact the stock brokers? How will it benefit the investors?  Timestamps: 02:10 - How trades are settled by your broker and exchange? Earlier and Now? 14:15 - Moving from t+2 to t+1 in settling share transactions 16:20 - Now clearing corporation holds the transactions before settlement. Is it safe? 21:15 - The practice of commingling (shares &amp; money) and regulations around it 40:00 - Drying up float income and the new role of a broker? 44:00 - How much does “no float income” hurt the broker? 52:30 - Will these regulations, meant to protect investors, actually lead to an increase in brokerage charges? 55:10 - Can these regulations prove to be counterproductive? 1:03:00 - Closing remarks

Stockbroking is a unique business enabling millions of people to trade billions of dollars of stocks with unknown counterparties. All trades, in this highly regulated ecosystem, are executed seamlessly, settled correctly, and recorded meticulously. It’s fascinating to see how far India has come in making this ecosystem world-class and in some cases, the best in the world. In this podcast, Deepak and Shray discuss the nuances of stock broking and how proposed regulations will impact the stock broking industry. They discuss, in detail, the role of stock brokers, regulators (SEBI), clearing corporations, exchanges, and investors. As an investor, how brokers are regulated doesn’t impact you directly. Yet, it is important to figure out what happens to your money when you click that buy/sell button on your app. Listen in as we talk about: <ul> <li>How does stock broking work in its present form?</li> <li>What are the new regulations proposed?</li> <li>How will these regulations impact the stock brokers?</li> <li>How will it benefit the investors?</li> </ul> Timestamps: 02:10 - How trades are settled by your broker and exchange? Earlier and Now? 14:15 - Moving from t+2 to t+1 in settling share transactions 16:20 - Now clearing corporation holds the transactions before settlement. Is it safe? 21:15 - The practice of commingling (shares &amp; money) and regulations around it 40:00 - Drying up float income and the new role of a broker? 44:00 - How much does “no float income” hurt the broker? 52:30 - Will these regulations, meant to protect investors, actually lead to an increase in brokerage charges? 55:10 - Can these regulations prove to be counterproductive? 1:03:00 - Closing remarks

SEBI takes a big chunk of income away from stock brokers

Forecasting is a very difficult business, like selecting lottery tickets. No one could have predicted 2022 as a year in which there was geopolitical war, worldwide inflation, a massive hike in interest rates worldwide, and the US S&amp;P 500 down about 20%, and yet, the Indian markets ended up 4%. If anyone got this spot on, they could still be terribly wrong for 2023. That’s why we don’t predict, we react. So, what’s going to happen in 2023? We can almost hear this question, despite all the data that says prediction is a waste of time. But then, much about the markets is an entertainment business, which means it’s great to see people make crazy zany predictions, and maybe some of them will win. So we’ll participate mildly in what should purely be entertainment, even if at some point it appears to have deep investing insights. Show Notes and References 1:55 Where should we invest in 2023 and some random predictions 3:00 Four ways this decade will be different from the last one 8:30 Return of Volatility in the markets 14:00 The peril of high interest rates Podcast: Investing in a world with high interest rates 17:00 Return of inflation and higher yields 23:00 Putting Indian inflation in perspective 34:20 Geopolitical turmoil &amp; the return of asset-heavy 39:40 ChatGPT, role of AI &amp; Predicting how humans will react 47:00 Tactically where do I invest my money now? 51:00 Sectors that are positioned well for the current macroeconomic scenario 59:45 Will emerging markets outshine US markets? How did you like the podcast? – Tweet to use at @capitalmind_in

Forecasting is a very difficult business, like selecting lottery tickets. No one could have predicted 2022 as a year in which there was geopolitical war, worldwide inflation, a massive hike in interest rates worldwide, and the US S&amp;P 500 down about 20%, and yet, the Indian markets ended up 4%. If anyone got this spot on, they could still be terribly wrong for 2023. That’s why we don’t predict, we react. So, what’s going to happen in 2023? We can almost hear this question, despite all the data that says prediction is a waste of time. But then, much about the markets is an entertainment business, which means it’s great to see people make crazy zany predictions, and maybe some of them will win. So we’ll participate mildly in what should purely be entertainment, even if at some point it appears to have deep investing insights. Show Notes and References 1:55 Where should we invest in 2023 and some random predictions 3:00 Four ways this decade will be different from the last one 8:30 Return of Volatility in the markets 14:00 The peril of high interest rates Podcast: <a href="https://www.capitalmind.in/2022/11/podcast-investing-in-a-world-with-high-interest-rates/" rel="nofollow" target="_blank">Investing in a world with high interest rates</a> 17:00 Return of inflation and higher yields 23:00 Putting Indian inflation in perspective 34:20 Geopolitical turmoil &amp; the return of asset-heavy 39:40 ChatGPT, role of AI &amp; Predicting how humans will react 47:00 Tactically where do I invest my money now? 51:00 Sectors that are positioned well for the current macroeconomic scenario 59:45 Will emerging markets outshine US markets? How did you like the podcast? – Tweet to use at @capitalmind_in

Where to invest in 2023?

Empowered Retirement

In this conversation with Shray, Deepak shares why he feels now is the time for India's concept of a Retirement Account - he calls it the MERA account. This account should help improve investment opportunities for retail customers, create a longer-term investment horizon and push people to save for their retirements. Listen in as we discuss:  The concept of a retirement account Impact on the economy and people Imagining a retirement account scheme that works for India The operational aspect of such an account Who would oppose such a thing?  Show notes and references 2:00 - Seven consecutive years of positive market returns for India 4:00 Seize the opportunity of India story with retirement accounts   Read: My Empowered Retirement Account (MERA) 8:30 Where do LIC and EPFO invest retirement money  "We're giving asset managers our retirement money and asking them to do great things for the next 20 - 30 years... But, they're not doing great things... They are conservative.. not letting me realize my larger risk appetite." 14:30 ELSS equity funds hold money for a longer period of time. Can't they act as retirement funds? 17:00 The peril of investing for retirement with post-tax money  25:00 Deepak introduces his idea of MERA - My Empowered Retirement Account (MERA) 33:00 Why does this matter so much at the national policy level?  41:20 Who are the people who would feel this is not a good idea?

In this conversation with Shray, Deepak shares why he feels now is the time for India's concept of a Retirement Account - he calls it the MERA account. This account should help improve investment opportunities for retail customers, create a longer-term investment horizon and push people to save for their retirements. Listen in as we discuss: <ul> <li>The concept of a retirement account</li> <li>Impact on the economy and people</li> <li>Imagining a retirement account scheme that works for India</li> <li>The operational aspect of such an account</li> <li>Who would oppose such a thing?</li> </ul> Show notes and references 2:00 - Seven consecutive years of positive market returns for India 4:00 Seize the opportunity of India story with retirement accounts  <a href="https://www.capitalmind.in/2019/06/budget-wish-my-empowered-retirement-account-mera/" rel="nofollow" target="_blank"> Read: My Empowered Retirement Account (MERA)</a> 8:30 Where do LIC and EPFO invest retirement money  "We're giving asset managers our retirement money and asking them to do great things for the next 20 - 30 years... But, they're not doing great things... They are conservative.. not letting me realize my larger risk appetite." 14:30 ELSS equity funds hold money for a longer period of time. Can't they act as retirement funds? 17:00 The peril of investing for retirement with post-tax money  25:00 Deepak introduces his idea of MERA - My Empowered Retirement Account (MERA) 33:00 Why does this matter so much at the national policy level?  41:20 Who are the people who would feel this is not a good idea?

Imagining MERA: My Empowered Retirement Account

Capitalmind looks at stocks, bonds, funds and the macro to bring you their view on the Indian financial markets. We discuss all things related to investing at our focussed podcast that keeps it simple. For more, go to capitalmind.in and to invest with us, visit capitalmindwealth.com

Deepak has a lot of data and opinions to share! The other guy isn’t bad either.

Engaging listen

Capitalmind looks at stocks, bonds, funds and the macro to bring you their view on the Indian financial markets. We discuss all things related to investing at our focussed podcast that keeps it simple. For more, go to <a href="http://capitalmind.in" rel="nofollow" target="_blank">capitalmind.in</a> and to invest with us, visit <a href="http://capitalmindwealth.com" rel="nofollow" target="_blank">capitalmindwealth.com</a>

Capitalmind Podcast

On today's show, Shray and Deepak discuss debt mutual funds. How do they really work? What do they invest in? And how do you evaluate these funds before investing in them? Preview "The whole money supply in India is about 150 lakh crores. Half of that is in Fixed Deposits with banks. Around 30-40 lakh crores is sitting with government bonds/funds issued by the government. The rest in retail deposits. Debt Mutual funds are nascent in comparison... we’ve calculated that you can pay 80% less tax if you hold a debt fund giving roughly the same interest as an FD if you hold it for 3+ years, even if you take out money from time to time. The tax advantage is huge for individuals who are in higher tax brackets."

On today's show, Shray and Deepak discuss debt mutual funds. How do they really work? What do they invest in? And how do you evaluate these funds before investing in them? Preview "The whole money supply in India is about 150 lakh crores. Half of that is in Fixed Deposits with banks. Around 30-40 lakh crores is sitting with government bonds/funds issued by the government. The rest in retail deposits. Debt Mutual funds are nascent in comparison... we’ve calculated that you can pay 80% less tax if you hold a debt fund giving roughly the same interest as an FD if you hold it for 3+ years, even if you take out money from time to time. The tax advantage is huge for individuals who are in higher tax brackets."

The run on debt mutual funds. Is your money safe? (EP 27)

On today’s show, we discuss the extreme volatility in financial markets and the Covid-19 pandemic affecting our daily lives. Is this a panic? How to we invest through this storm? Read the transcript here.

On today’s show, we discuss the extreme volatility in financial markets and the Covid-19 pandemic affecting our daily lives. Is this a panic? How to we invest through this storm? Read the transcript <a href="https://www.capitalmind.in/2020/03/how-do-you-invest-through-a-panic/" rel="noopener nofollow" target="_blank">here</a>.

How do you invest through a panic? (EP 25)

On today's show, Shray and Deepak discuss FIIs (Foreign Institutional Investors). Who are they, how big are they, and what role do they play in our markets?  Read the transcript here.

On today's show, Shray and Deepak discuss FIIs (Foreign Institutional Investors). Who are they, how big are they, and what role do they play in our markets? Read the transcript <a href="https://www.capitalmind.in/2020/04/who-moved-my-mar%E2%80%A6per-look-at-fiis/" rel="noopener nofollow" target="_blank">here.</a>

Who moved my market? FIIs? (EP 26)

We often hear that "Mutual Funds Sahi Hai". But none of the experts answer, "Konsa Mutual Fund Sahi Hai?" Host Deepak Shenoy (CEO) and Aditya Jaiswal bring you another Podcast where they simplify mutual funds, allocation (debt-equity), SIP vs lump sum debate, the myth regarding Star ratings, ELSS funds, expense ratios, Sectoral funds and a lot more! Transcripts:  capitalmind.in/2019/11/how-to-buy-a-mutual-fund-ep-14/

We often hear that "Mutual Funds Sahi Hai". But none of the experts answer, "Konsa Mutual Fund Sahi Hai?" Host <a href="https://twitter.com/deepakshenoy" rel="noopener noreferrer nofollow" target="_blank">Deepak Shenoy</a> (CEO) and <a href="https://twitter.com/AstuteAditya" rel="noopener noreferrer nofollow" target="_blank">Aditya Jaiswal</a> bring you another Podcast where they simplify mutual funds, allocation (debt-equity), SIP vs lump sum debate, the myth regarding Star ratings, ELSS funds, expense ratios, Sectoral funds and a lot more! Transcripts: <a href="https://www.capitalmind.in/2019/11/how-to-buy-a-mutual-fund-ep-14/" rel="nofollow" target="_blank"> capitalmind.in/2019/11/how-to-buy-a-mutual-fund-ep-14/</a>

How To Buy A Mutual Fund (Ep-14)

"Under normal circumstances, merging PSUs would have been impossible, had the government tried it 5 years ago, there would been riot on the street, today there is not even a murmur. They were able to do that because the slowdown is obvious!" - Deepak Shenoy Host Deepak Shenoy (CEO) and Aditya Jaiswal discuss about the economic slowdown witnessed in the Indian economy. Read Full transcript:  https://www.capitalmind.in/2019/09/podcast-how-slow-is-the-indian-economy-episode-8/   The Podcast was divided into three broad sections: a) Macro indicators (20 mins) b) Recent federal regulations (8 minutes) c) Few sectors which are currently facing a slowdown (30 mins)   Below is an excerpt of the podcast with time stamps of important sections! 1) Macro-indicators 1:40-  GDP growth: We have had 5 consecutive quarters of decelerating GDP numbers, right from 8.2% in Q1 18 to 5% in Q1 19, this was the slowest growth in 25 quarters. How bad the situation is and is the worst behind us? Or should we expect a couple of more tepid quarters? 3:20- Inflation: Inflation has been under control, it has been consistently falling for 6 straight months since Jan 2019, when inflation is under control, why is the GDP falling?, does this reflect weakening demand ultimately cooling off growth? Weakening of demand is concerning because we recently heard two big biscuit manufacturers going on record to say that people are not buying even 5-rupee packet biscuits. 8:07- Unemployment: Unemployment in FY18 stood at 6.1%, a 45 year high, now with big manufacturing units announcing massive job cuts, auto alone has seen 2.3 lakh people losing jobs, where do you see unemployment situation going in the near term? 11:02- Private consumption: Private consumption which constitutes about 58-59% of the GDP has been slowing down. Urban wage growth has stagnated, white collar wages have been slowing and rural consumption has also fallen on back of collapse on food prices and job cuts by manufacturing units, where do you see this going? 15:00- Investments: We looked at the GDP growth, inflation, unemployment and consumption, let's talk about investments. The gross capital formation has fallen from 34% in 2011 to 29% in 2018. Do you believe that we are stuck in a low growth cycle (Falling wages- falling savings, falling investments and low GDP growth)? 2) Recent federal regulations 20:30- Impact of GST and Demonetization on the economy About 30% of the Indian economy is completely informal and employs a chunk of the population. In 2014-15, late Arun Jaitley had made a statement, the informal sector doesn’t want to operate in shadows, neither they are corrupt, rather it was a failure on the part of the federal governments that even after six decades of independence, we couldn’t integrate them with the formal economy” In the pursuit of this integration, the government went ahead with the vision of cashless economy, demonetization and GST. Do you believe that demonetization and GST have actually hit the informal sector really hard? Do you think, somewhere, it turned out to be a shock therapy for the unorganized sector? 3) Sectors 28:18- Real Estate Residential real estate which was mostly fueled by black money is really not moving except the affordable housing part. Now that black money is hiding in may be gold! How will that come back into the economy? Where do you see the sector going? 33:09- Automobiles Now, we all know that there is a crisis in the Indian auto industry,  all big manufacturers are reporting double digit falls in volumes. TVS chairman made a big statement, that this slowdown is the worst in 3 decades and spread across sectors. Auto stocks recently witnessed buying interest in the anticipation of a GST cut, do you believe that a GST cut can change the fortunes of the sector? 41:28- Automobile replacement cycle A lot of existing car owners have started using Ola/Uber/Quick ride and this has led to postponement new car purchase, where do you see the replacement cycle going forward? 45:23- FMCG Parle-G and Britannia went on record to say that people are not buying even INR5 rupee packet biscuits. But FMCG stocks still command relatively high premium, why is that? Do you see optimism in investors, that among autos, infra, discretionary, real estate, financials, FMCG will be resilient. 50:50- Final thoughts! You can also listen to our podcasts on our app: www.capitalmind.in/podcast

"Under normal circumstances, merging PSUs would have been impossible, had the government tried it 5 years ago, there would been riot on the street, today there is not even a murmur. They were able to do that because the slowdown is obvious!" - Deepak Shenoy Host <a href="https://twitter.com/deepakshenoy" rel="noopener noreferrer nofollow" target="_blank">Deepak Shenoy</a> (CEO) and <a href="https://twitter.com/AstuteAditya" rel="noopener noreferrer nofollow" target="_blank">Aditya Jaiswal</a> discuss about the economic slowdown witnessed in the Indian economy. Read Full transcript: <a href="https://www.capitalmind.in/2019/09/podcast-how-slow-is-the-indian-economy-episode-8/" rel="nofollow" target="_blank"> https://www.capitalmind.in/2019/09/podcast-how-slow-is-the-indian-economy-episode-8/</a> The Podcast was divided into three broad sections: a) Macro indicators (20 mins) b) Recent federal regulations (8 minutes) c) Few sectors which are currently facing a slowdown (30 mins) Below is an excerpt of the podcast with time stamps of important sections! 1) Macro-indicators 1:40-  GDP growth: We have had 5 consecutive quarters of decelerating GDP numbers, right from 8.2% in Q1 18 to 5% in Q1 19, this was the slowest growth in 25 quarters. How bad the situation is and is the worst behind us? Or should we expect a couple of more tepid quarters? 3:20- Inflation: Inflation has been under control, it has been consistently falling for 6 straight months since Jan 2019, when inflation is under control, why is the GDP falling?, does this reflect weakening demand ultimately cooling off growth? Weakening of demand is concerning because we recently heard two big biscuit manufacturers going on record to say that people are not buying even 5-rupee packet biscuits. 8:07- Unemployment: Unemployment in FY18 stood at 6.1%, a 45 year high, now with big manufacturing units announcing massive job cuts, auto alone has seen 2.3 lakh people losing jobs, where do you see unemployment situation going in the near term? 11:02- Private consumption: Private consumption which constitutes about 58-59% of the GDP has been slowing down. Urban wage growth has stagnated, white collar wages have been slowing and rural consumption has also fallen on back of collapse on food prices and job cuts by manufacturing units, where do you see this going? 15:00- Investments: We looked at the GDP growth, inflation, unemployment and consumption, let's talk about investments. The gross capital formation has fallen from 34% in 2011 to 29% in 2018. Do you believe that we are stuck in a low growth cycle (Falling wages- falling savings, falling investments and low GDP growth)? 2) Recent federal regulations 20:30- Impact of GST and Demonetization on the economy About 30% of the Indian economy is completely informal and employs a chunk of the population. In 2014-15, late Arun Jaitley had made a statement, the informal sector doesn’t want to operate in shadows, neither they are corrupt, rather it was a failure on the part of the federal governments that even after six decades of independence, we couldn’t integrate them with the formal economy” In the pursuit of this integration, the government went ahead with the vision of cashless economy, demonetization and GST. Do you believe that demonetization and GST have actually hit the informal sector really hard? Do you think, somewhere, it turned out to be a shock therapy for the unorganized sector? 3) Sectors 28:18- Real Estate Residential real estate which was mostly fueled by black money is really not moving except the affordable housing part. Now that black money is hiding in may be gold! How will that come back into the economy? Where do you see the sector going? 33:09- Automobiles Now, we all know that there is a crisis in the Indian auto industry,  all big manufacturers are reporting double digit falls in volumes. TVS chairman made a big statement, that this slowdown is the worst in 3 decades and spread across sectors. Auto stocks recently witnessed buying interest in the anticipation of a GST cut, do you believe that a GST cut can change the fortunes of the sector? 41:28- Automobile replacement cycle A lot of existing car owners have started using Ola/Uber/Quick ride and this has led to postponement new car purchase, where do you see the replacement cycle going forward? 45:23- FMCG Parle-G and Britannia went on record to say that people are not buying even INR5 rupee packet biscuits. But FMCG stocks still command relatively high premium, why is that? Do you see optimism in investors, that among autos, infra, discretionary, real estate, financials, FMCG will be resilient. 50:50- Final thoughts! You can also listen to our podcasts on our app: <a href="http://www.capitalmind.in/podcast" rel="noopener noreferrer nofollow" target="_blank">www.capitalmind.in/podcast</a>

How Slow Is The Indian Economy? (Episode-8)

The year 2019 has been quite eventful for the Indian markets! Right from corporate governance issues popping up almost every month, the collapse of NBFCs such IL&amp;FS and DHFL, then the shady practices in scheduled banks such as the PMC Bank and now comes the Karvy fiasco. Read transcripts here:  https://www.capitalmind.in/2019/11/podcast-the-strange-happenings-at-karvy-ep-15/ Deepak Shenoy (CEO) and Aditya Jaiswal (Analyst) discuss in detail how the Karvy fiasco unraveled followed by series of questions such as:  What is a pool account and are brokers using it as means to fund themselves? Can brokers misuse the power of attorney signed by their clients? Is it safer to have demat accounts with banks? What should the existing clients of Karvy do? What happens to the banks/NBFCs who have lent money to Karvy? 

The year 2019 has been quite eventful for the Indian markets! Right from corporate governance issues popping up almost every month, the collapse of NBFCs such IL&amp;FS and DHFL, then the shady practices in scheduled banks such as the PMC Bank and now comes the Karvy fiasco. Read transcripts here: <a href="https://www.capitalmind.in/2019/11/podcast-the-strange-happenings-at-karvy-ep-15/" rel="nofollow" target="_blank"> https://www.capitalmind.in/2019/11/podcast-the-strange-happenings-at-karvy-ep-15/</a> <a href="https://twitter.com/deepakshenoy" rel="noopener noreferrer nofollow" target="_blank">Deepak Shenoy</a> (CEO) and <a href="https://twitter.com/AstuteAditya" rel="noopener noreferrer nofollow" target="_blank">Aditya Jaiswal</a> (Analyst) discuss in detail how the Karvy fiasco unraveled followed by series of questions such as: <ol> <li>What is a pool account and are brokers using it as means to fund themselves?</li> <li>Can brokers misuse the power of attorney signed by their clients?</li> <li>Is it safer to have demat accounts with banks?</li> <li>What should the existing clients of Karvy do?</li> <li>What happens to the banks/NBFCs who have lent money to Karvy?</li> </ol>

The Strange Happenings at Karvy (Ep-15)

On today's show, Deepak Shenoy (CEO) and Aditya Jaiswal discuss the impact of the union budget on our savings and investments- would you be better off moving on to the new tax regime? how does the budget impact your mutual funds (dividend options)? Are the Arb fund dividend reinvestment plans dead? Transcripts:  https://www.capitalmind.in/2020/02/podcast-22-how-budget-2020-impacts-the-way-you-save-and-invest/

On today's show, <a href="https://twitter.com/deepakshenoy" rel="noopener noreferrer nofollow" target="_blank">Deepak Shenoy</a> (CEO) and <a href="https://twitter.com/AstuteAditya" rel="noopener noreferrer nofollow" target="_blank">Aditya Jaiswal</a> discuss the impact of the union budget on our savings and investments- would you be better off moving on to the new tax regime? how does the budget impact your mutual funds (dividend options)? Are the Arb fund dividend reinvestment plans dead? Transcripts: <a href="https://www.capitalmind.in/2020/02/podcast-22-how-budget-2020-impacts-the-way-you-save-and-invest/" rel="nofollow" target="_blank"> https://www.capitalmind.in/2020/02/podcast-22-how-budget-2020-impacts-the-way-you-save-and-invest/</a>

How Budget 2020 impacts the way you save and invest (Ep-22)

Deepak Shenoy and Shray Chandra speak about how financial advice has evolved in India. Read full transcript:  https://www.capitalmind.in/2019/04/podcast-the-state-of-financial-advice-in-india-episode-4/   1) How did we get here? What’s been the evolution of financial advice in India and where are we now? 2) Who actually needs financial advice? 3) What is an advisor’s role, what should the customer expect and what should the advisor be doing? 4) What’s wrong with the current state of financial advice? 5) From the Customer’s POV: how do you identify bad advice? 6) What do you see changing with regard to financial advice? 7) What should our customers or listeners do with regard to financial advice or advisors? Do let us know how you've enjoyed it! We are @capitalmind_in on twitter and podcast [at] capitalmind.in on email. 

Deepak Shenoy and Shray Chandra speak about how financial advice has evolved in India. Read full transcript: <a href="https://www.capitalmind.in/2019/04/podcast-the-state-of-financial-advice-in-india-episode-4/" rel="nofollow" target="_blank"> https://www.capitalmind.in/2019/04/podcast-the-state-of-financial-advice-in-india-episode-4/</a> 1) How did we get here? What’s been the evolution of financial advice in India and where are we now? 2) Who actually needs financial advice? 3) What is an advisor’s role, what should the customer expect and what should the advisor be doing? 4) What’s wrong with the current state of financial advice? 5) From the Customer’s POV: how do you identify bad advice? 6) What do you see changing with regard to financial advice? 7) What should our customers or listeners do with regard to financial advice or advisors? Do let us know how you've enjoyed it! We are @capitalmind_in on twitter and podcast [at] <a href="http://capitalmind.in" rel="nofollow" target="_blank">capitalmind.in</a> on email.

The State of Financial Advice in India (Episode 4)

Deepak Shenoy (@deepakshenoy) speaks with Nithin Kamath (@Nithin0dha), CEO of Zerodha about the Karvy mess- does it reflect a systemic failure? do brokers like Karvy have legacy issues? how differently does Zerodha operate? and most importantly, what should investors do to protect themselves from such scandals in the future. Transcripts:  https://www.capitalmind.in/2019/12/podcast-16-what-broke-karvy-and-how-is-zerodha-shaping-the-future-of-broking/

Deepak Shenoy (<a href="https://twitter.com/deepakshenoy" rel="noopener noreferrer nofollow" target="_blank">@deepakshenoy</a>) speaks with Nithin Kamath (<a href="https://twitter.com/Nithin0dha" rel="noopener noreferrer nofollow" target="_blank">@Nithin0dha</a>), CEO of Zerodha about the Karvy mess- does it reflect a systemic failure? do brokers like Karvy have legacy issues? how differently does Zerodha operate? and most importantly, what should investors do to protect themselves from such scandals in the future. Transcripts: <a href="https://www.capitalmind.in/2019/12/podcast-16-what-broke-karvy-and-how-is-zerodha-shaping-the-future-of-broking/" rel="nofollow" target="_blank"> https://www.capitalmind.in/2019/12/podcast-16-what-broke-karvy-and-how-is-zerodha-shaping-the-future-of-broking/</a>

What Broke Karvy and How Zerodha is Shaping the Future of Broking (Ep-16)

Host Deepak Shenoy (CEO) and Aditya Jaiswal discuss about Yes Bank – The “Kohinoor” of Rana Kapoor, pledging of shares by ZEE and deferred tax assets (DTAs) in the books of private and public sector banks.  Deepak’s thoughts on Yes Bank (1:35) Cockroaches in Zee’s Books? (5:45) Deferred tax assets in the books of private and public sector banks (10:00)  Read full transcript:  https://www.capitalmind.in/2019/10/yes-banks-fall-zees-fall-and-deferred-tax-assets-ep-12/   Excerpts: 1. Deepak's thoughts on Yes Bank: Why should people continue to retain deposits with the Yes bank? The answer to this is two things First of all, the bank accounts itself don't show us the kind of panic that people seem to have in their heads the deposits seem relatively safe. And to that extent, you know, if you look at the numbers that they have their INR 58,000 crores in government bonds are the 2 lakh Crore in govt deposits, that's 25% straightaway or 30% early and then they have loans worth INR 2,30,000 crores, they have another you know 10,000 crores of cash with RBI they have another INR 5000 somewhere else. So, there is essentially about 75,000 crores of very, very liquid assets that they have. They have also told us that, you know we've still seeing certain amount of rationalization in their in their loans. Even if all the BB loans were to go to zero and their current NPAs are all supposed to go to zero, they would lose roughly 20-25,000 crores this would take you know eight quarters because RBI way gives them already quarters write them down, in those eight quarters they will generate INR12-13,000 crores of profits because they have other loans which are good, there is a potential another fund raise that will come up so, at max I think even if they were to take this extreme step of where all these loans go bad, the capital ratios will still be okay... "I don't think it's a great time for anybody to buy Yes bank stock, it's a lottery! But the chances of winning substantial amounts are very low. So I'm not really interested in the stock. I am, however, of the opinion that the deposits are safe." 2. Cockroaches in Zee's Books? (5:45) If you look at the FII holding of ZEE, about 47% of ZEE is held by FIIs, out of which the big guys that is anybody who owns more than 1% of Zee add up to only only 19%. So, the remaining 30% of ZEE holding (held by FIIs), is held by a lot of FIIs who have less than 1% shares. Who are these FIIs? Why are there so many of them? And how come they all own these tiny little percentages of ZEE? We don't know the answer to that... 3. Deferred tax assets in the books of private and public sector banks If you take the 22% tax regime, you can't use the deferred tax assets. Whenever you take an asset and say that as it is worthless now, because I'm going to the 22% tax regime and that tax regime does not allow me to take the deferred tax asset, I am immediately going to lose that amount...

Host <a href="https://twitter.com/deepakshenoy" rel="noopener noreferrer nofollow" target="_blank">Deepak Shenoy</a> (CEO) and <a href="https://twitter.com/AstuteAditya" rel="noopener noreferrer nofollow" target="_blank">Aditya Jaiswal</a> discuss about Yes Bank – The “Kohinoor” of Rana Kapoor, pledging of shares by ZEE and deferred tax assets (DTAs) in the books of private and public sector banks. <ol> <li>Deepak’s thoughts on Yes Bank (1:35)</li> <li>Cockroaches in Zee’s Books? (5:45)</li> <li>Deferred tax assets in the books of private and public sector banks (10:00)</li> </ol> Read full transcript: <a href="https://www.capitalmind.in/2019/10/yes-banks-fall-zees-fall-and-deferred-tax-assets-ep-12/" rel="nofollow" target="_blank"> https://www.capitalmind.in/2019/10/yes-banks-fall-zees-fall-and-deferred-tax-assets-ep-12/</a>   Excerpts: 1. Deepak's thoughts on Yes Bank: Why should people continue to retain deposits with the Yes bank? The answer to this is two things First of all, the bank accounts itself don't show us the kind of panic that people seem to have in their heads the deposits seem relatively safe. And to that extent, you know, if you look at the numbers that they have their INR 58,000 crores in government bonds are the 2 lakh Crore in govt deposits, that's 25% straightaway or 30% early and then they have loans worth INR 2,30,000 crores, they have another you know 10,000 crores of cash with RBI they have another INR 5000 somewhere else. So, there is essentially about 75,000 crores of very, very liquid assets that they have. They have also told us that, you know we've still seeing certain amount of rationalization in their in their loans. Even if all the BB loans were to go to zero and their current NPAs are all supposed to go to zero, they would lose roughly 20-25,000 crores this would take you know eight quarters because RBI way gives them already quarters write them down, in those eight quarters they will generate INR12-13,000 crores of profits because they have other loans which are good, there is a potential another fund raise that will come up so, at max I think even if they were to take this extreme step of where all these loans go bad, the capital ratios will still be okay... "I don't think it's a great time for anybody to buy Yes bank stock, it's a lottery! But the chances of winning substantial amounts are very low. So I'm not really interested in the stock. I am, however, of the opinion that the deposits are safe." 2. Cockroaches in Zee's Books? (5:45) If you look at the FII holding of ZEE, about 47% of ZEE is held by FIIs, out of which the big guys that is anybody who owns more than 1% of Zee add up to only only 19%. So, the remaining 30% of ZEE holding (held by FIIs), is held by a lot of FIIs who have less than 1% shares. Who are these FIIs? Why are there so many of them? And how come they all own these tiny little percentages of ZEE? We don't know the answer to that... 3. Deferred tax assets in the books of private and public sector banks If you take the 22% tax regime, you can't use the deferred tax assets. Whenever you take an asset and say that as it is worthless now, because I'm going to the 22% tax regime and that tax regime does not allow me to take the deferred tax asset, I am immediately going to lose that amount...

Yes Bank’s Fall, Zee’s Woes and Deferred Tax Assets (Ep-12)

On today's show, Deepak Shenoy (CEO) and Aditya Jaiswal (Analyst) discuss the Bharat Bond ETF in detail. Transcript: https://www.capitalmind.in/2019/12/bharat-bond-etf/ Q) Will it provide the much needed liquidity to the debt market? Who are going to be the market makers? Q) Is it a zero credit risk option? and what about the interest rate risk? Q) Is it a good deal for the fixed income investors? Q) Which option will suit you better, the 3-year variant or the 5-year variant? Grab your popcorn and stay tuned, you are going to enjoy this one!

On today's show, <a href="https://twitter.com/deepakshenoy/status/1204340567821283328?s=20" rel="noopener noreferrer nofollow" target="_blank">Deepak Shenoy</a> (CEO) and <a href="https://twitter.com/deepakshenoy/status/1204340567821283328?s=20" rel="noopener noreferrer nofollow" target="_blank">Aditya Jaiswal</a> (Analyst) discuss the Bharat Bond ETF in detail. Transcript: <a href="https://www.capitalmind.in/2019/12/bharat-bond-etf/" rel="nofollow" target="_blank">https://www.capitalmind.in/2019/12/bharat-bond-etf/</a> Q) Will it provide the much needed liquidity to the debt market? Who are going to be the market makers? Q) Is it a zero credit risk option? and what about the interest rate risk? Q) Is it a good deal for the fixed income investors? Q) Which option will suit you better, the 3-year variant or the 5-year variant? Grab your popcorn and stay tuned, you are going to enjoy this one!

What to make of the Bharat Bond ETF (Ep-17)

Is passive investing making investors insensitive to price and valuations? Is this distorting the capital flows to the market? In U.S, the market share for passively managed funds has risen to about 51 percent, but what is the number for India? Where do we stand? Transcripts: https://www.capitalmind.in/2020/01/the-amazing-rise-of-passive-and-what-you-need-to-do-about-it Deepak Shenoy (CEO) and Aditya Jaiswal (Analyst) answer these and a lot more questions on today’s show.

Is passive investing making investors insensitive to price and valuations? Is this distorting the capital flows to the market? In U.S, the market share for passively managed funds has risen to about 51 percent, but what is the number for India? Where do we stand? Transcripts: <a href="https://www.capitalmind.in/2020/01/the-amazing-rise-of-passive-and-what-you-need-to-do-about-it" rel="nofollow" target="_blank">https://www.capitalmind.in/2020/01/the-amazing-rise-of-passive-and-what-you-need-to-do-about-it</a> <a href="https://twitter.com/deepakshenoy" rel="noopener noreferrer nofollow" target="_blank">Deepak Shenoy</a> (CEO) and <a href="https://twitter.com/AstuteAditya" rel="noopener noreferrer nofollow" target="_blank">Aditya Jaiswal</a> (Analyst) answer these and a lot more questions on today’s show.

The amazing rise of passive and what you need to do about it (Ep-21)

Host Deepak Shenoy (CEO) and Aditya Jaiswal discuss investor queries in a new show - The Investor Wants to Know. Topics discussed include passive investing, current NBFC scenario, slowdown in the auto sector, cooking up of books by companies, fundamental analysis, global recession, surge in gold prices, aviation industry. Read Full transcript:  https://www.capitalmind.in/2019/09/podcast-the-investor-wants-to-know-episode-7/   Notes: How do you see the investment horizon for different categories of MFs? If you are looking for a horizon for investing, then it's not investing, it's a trade! Asset allocation metrics (large, mid and small caps) can shift, but horizon should be long term. Stay invested as long as you don't need the money! What are your views on passive investing? Is it advisable to invest in small cap index funds as most of good performing stocks will become midcaps and non-performing midcaps will become large caps which might pull the returns down? In India, one should look at the large caps because that is where the index funds will benefit the most. If you invest in small cap index, your best stocks are going to move out. Rather, one may look at the stocks which are actually leaving the small cap index. How bad is the NBFC scenario? Many of the NBFC's may lose their current structure- few will be taken over, few will be cut up into pieces and sold. Global P/E players are also keen on buying assets on discounts. None of NBFCs will go bust, since they have valuable assets. It will take another year for clarity to emerge. How to find out if a company is cooking up it's books? It is very difficult for a retail investor to dig up gold plated numbers, there is no one way. Retail investors should diversify, do not put more than 5-10% in one stock. It's not worth losing sleep over your investments! What are your views on auto sector? We are going through a time when people are not buying cars, at the same time, India is not at a stage where people who aspire to buy cars or bikes, have bought enough of them. China sells 16x more vehicles than India. This is not an unending cycle or death of auto industry. You can also listen to our podcasts on our app: www.capitalmind.in/podcast

Host <a href="https://twitter.com/deepakshenoy" rel="noopener noreferrer nofollow" target="_blank">Deepak Shenoy</a> (CEO) and <a href="https://twitter.com/AstuteAditya" rel="noopener noreferrer nofollow" target="_blank">Aditya Jaiswal</a> discuss investor queries in a new show - The Investor Wants to Know. Topics discussed include passive investing, current NBFC scenario, slowdown in the auto sector, cooking up of books by companies, fundamental analysis, global recession, surge in gold prices, aviation industry. Read Full transcript: <a href="https://www.capitalmind.in/2019/09/podcast-the-investor-wants-to-know-episode-7/" rel="nofollow" target="_blank"> https://www.capitalmind.in/2019/09/podcast-the-investor-wants-to-know-episode-7/</a>   Notes: How do you see the investment horizon for different categories of MFs? If you are looking for a horizon for investing, then it's not investing, it's a trade! Asset allocation metrics (large, mid and small caps) can shift, but horizon should be long term. Stay invested as long as you don't need the money! What are your views on passive investing? Is it advisable to invest in small cap index funds as most of good performing stocks will become midcaps and non-performing midcaps will become large caps which might pull the returns down? In India, one should look at the large caps because that is where the index funds will benefit the most. If you invest in small cap index, your best stocks are going to move out. Rather, one may look at the stocks which are actually leaving the small cap index. How bad is the NBFC scenario? Many of the NBFC's may lose their current structure- few will be taken over, few will be cut up into pieces and sold. Global P/E players are also keen on buying assets on discounts. None of NBFCs will go bust, since they have valuable assets. It will take another year for clarity to emerge. How to find out if a company is cooking up it's books? It is very difficult for a retail investor to dig up gold plated numbers, there is no one way. Retail investors should diversify, do not put more than 5-10% in one stock. It's not worth losing sleep over your investments! What are your views on auto sector? We are going through a time when people are not buying cars, at the same time, India is not at a stage where people who aspire to buy cars or bikes, have bought enough of them. China sells 16x more vehicles than India. This is not an unending cycle or death of auto industry. You can also listen to our podcasts on our app: <a href="http://www.capitalmind.in/podcast" rel="nofollow" target="_blank">www.capitalmind.in/podcast</a>

The Investor Wants to Know (Episode-7)

Anupam Gupta

Anupam Gupta (b50 on Twitter) speaks with Deepak Shenoy of Capitalmind, about what to focus on when investing. It's more about just regular investing, than other things like returns or timing the market, says Anupam. You'll make more money by saving more , instead of focussing on how much you should invest at what time in what stock.  Read full transcript:  https://www.capitalmind.in/2019/05/podcast-anupam-gupta-on-regular-investing-and-where-to-focus/  Also - focus on liquidity, he says. Locking in investments in insurance or other such locked in plans isn't cool.  On that and more, about India and abroad, about Bombay and other cities - listen to this episode on Regular Investing.  Anupam is a podcast host at Paisa Vaisa, and also an investment research consultant and a Chartered Accountant. 

Anupam Gupta (b50 on Twitter) speaks with Deepak Shenoy of Capitalmind, about what to focus on when investing. It's more about just regular investing, than other things like returns or timing the market, says Anupam. You'll make more money by saving more , instead of focussing on how much you should invest at what time in what stock.  Read full transcript: <a href="https://www.capitalmind.in/2019/05/podcast-anupam-gupta-on-regular-investing-and-where-to-focus/" rel="nofollow" target="_blank"> https://www.capitalmind.in/2019/05/podcast-anupam-gupta-on-regular-investing-and-where-to-focus/</a> Also - focus on liquidity, he says. Locking in investments in insurance or other such locked in plans isn't cool.  On that and more, about India and abroad, about Bombay and other cities - listen to this episode on Regular Investing.  Anupam is a podcast host at Paisa Vaisa, and also an investment research consultant and a Chartered Accountant.

Anupam Gupta (b50) On Where To Focus in Investing (Episode 5)

We discussed five broad questions: 1) Should India borrow abroad, if yes, then why? (10 mins) 2) Domestic liquidity issues and crowding out effect (8 minutes) 3) Why are experts (Ex- RBI governors) against this move? (3 mins) 4) What are risks o going overboard with overseas borrowing? (4 mins) 5) Risks of borrowing abroad (15 mins) Below is an excerpt of the podcast with time stamps of important sections! Read full transcript:  https://www.capitalmind.in/2019/09/podcast-should-the-indian-government-borrow-from-abroad-episode-9/   1.Should India borrow abroad, if yes, then why? (2:00) The government borrows roughly INR5 lakh crores net per year. In the next year, the estimate of revenue that we want to collect just taxes, Indians will collect about 16 lakh gross, the government will pay 6.5 lakh crores in debt interest payment. About 40% percent of all of money that you're paying as a tax, is going not to build infrastructure, not to feed the hungry, not to pay farmers for food. It's going towards interest payments on the debt they borrowed in the past. Why would this be a problem? because we borrow debt at extremely high rates part. And here's the important thing, India's own companies that borrow abroad (ONGC for an example) has a bond issued in euros and euro denominated debt... 2. Domestic liquidity issues and crowding out effect (10:40) You know, this is interesting, because what some of the economists have put across is or you know, what Indian Government is borrowing 3.3% and 2.2% is by states and some 4% is something else. And therefore, India's gross financial savings, which is about 10% of GDP out of which about 8% of GDP is borrowed by the government, my answer to that is that's not true! 3. Why are experts (Ex- RBI governors) against this move? (18:00) About 1% of GDP is about 2 lakh crores. I think it's too small. I think in any given year, you can say don't borrow more than 1% of GDP. That's fine. I don't think India will see appetite for more than 10 billion euros at this point, which is about 70-75,000 crores thousand crores. I don't think any more appetite exists right now because everybody wants to wait and watch. And I think this is a good start. If there is an appetite, of course, we can look at more, I think you know, go and give more and buy a bottle more, especially if they're going to give it to you at negative rates, just go and borrow as much as you can, up to say 10% of the total debt... 4. What are risks o going overboard with overseas borrowing? (21:00) The problem is that, what if another government is in power, right?. What if the same government is in power? Your problem is this, you're creating debt, it could be a poison- poisoning the well phenomenon. And the idea is that poisoning the well is like, you know, when, when people used to attack another country, these two are another place which will which had a fort, the idea was to throw poisoned frogs, rags, with darts and arrows. Some of them could fall inside a well which would then get poisoned, then nobody would have any source of water and everybody would die. Poisoning the well is to say to the next person that comes here, he will not enjoy that place because the water will be poisoned, they won't be able to drink the water. If you poison a well, you too can't come back! 5. Risks of borrowing abroad (24:50) I think the point is if we borrow $100 at 70 rupees, we get 7,000. We may get it at 0.45%, but three years later rupees or 100. And then we return the hundred dollars and we return 10,000 rupees.

We discussed five broad questions: 1) Should India borrow abroad, if yes, then why? (10 mins) 2) Domestic liquidity issues and crowding out effect (8 minutes) 3) Why are experts (Ex- RBI governors) against this move? (3 mins) 4) What are risks o going overboard with overseas borrowing? (4 mins) 5) Risks of borrowing abroad (15 mins) Below is an excerpt of the podcast with time stamps of important sections! Read full transcript: <a href="https://www.capitalmind.in/2019/09/podcast-should-the-indian-government-borrow-from-abroad-episode-9/" rel="nofollow" target="_blank"> https://www.capitalmind.in/2019/09/podcast-should-the-indian-government-borrow-from-abroad-episode-9/</a> 1.Should India borrow abroad, if yes, then why? (2:00) The government borrows roughly INR5 lakh crores net per year. In the next year, the estimate of revenue that we want to collect just taxes, Indians will collect about 16 lakh gross, the government will pay 6.5 lakh crores in debt interest payment. About 40% percent of all of money that you're paying as a tax, is going not to build infrastructure, not to feed the hungry, not to pay farmers for food. It's going towards interest payments on the debt they borrowed in the past. Why would this be a problem? because we borrow debt at extremely high rates part. And here's the important thing, India's own companies that borrow abroad (ONGC for an example) has a bond issued in euros and euro denominated debt... 2. Domestic liquidity issues and crowding out effect (10:40) You know, this is interesting, because what some of the economists have put across is or you know, what Indian Government is borrowing 3.3% and 2.2% is by states and some 4% is something else. And therefore, India's gross financial savings, which is about 10% of GDP out of which about 8% of GDP is borrowed by the government, my answer to that is that's not true! 3. Why are experts (Ex- RBI governors) against this move? (18:00) About 1% of GDP is about 2 lakh crores. I think it's too small. I think in any given year, you can say don't borrow more than 1% of GDP. That's fine. I don't think India will see appetite for more than 10 billion euros at this point, which is about 70-75,000 crores thousand crores. I don't think any more appetite exists right now because everybody wants to wait and watch. And I think this is a good start. If there is an appetite, of course, we can look at more, I think you know, go and give more and buy a bottle more, especially if they're going to give it to you at negative rates, just go and borrow as much as you can, up to say 10% of the total debt... 4. What are risks o going overboard with overseas borrowing? (21:00) The problem is that, what if another government is in power, right?. What if the same government is in power? Your problem is this, you're creating debt, it could be a poison- poisoning the well phenomenon. And the idea is that poisoning the well is like, you know, when, when people used to attack another country, these two are another place which will which had a fort, the idea was to throw poisoned frogs, rags, with darts and arrows. Some of them could fall inside a well which would then get poisoned, then nobody would have any source of water and everybody would die. Poisoning the well is to say to the next person that comes here, he will not enjoy that place because the water will be poisoned, they won't be able to drink the water. If you poison a well, you too can't come back! 5. Risks of borrowing abroad (24:50) I think the point is if we borrow $100 at 70 rupees, we get 7,000. We may get it at 0.45%, but three years later rupees or 100. And then we return the hundred dollars and we return 10,000 rupees.

Should The Indian Government Borrow From Abroad? (Episode-9)

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