Discord Voice AMA with Deepak Shenoy & Capitalmind Team: Sunday 20th June, 3:00 p.m

[crixus123]

Discord Link​

AMA Details​

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This Sunday afternoon, join us for chitchat on all things finance / investments / economics, with CapitalMind founder, Deepak Shenoy, and team.

Deepak (/@notalkb4coffee ) is CEO and founder at Capitalmind. He has about 20 years of experience in stock markets, and is a guest analyst on CNBC-TV18 and ET Now. Deepak is a SEBI registered Research Analyst, with a degree from NIT Surathkal.

Vashistha (/@ghassen ) is Chief Operating Officer at Capitalmind. He co-founded Political Consulting startup Policiti and has served as Chief of Staff to Member of Parliament PD Rai as a LAMP fellow. He has studied from NIFT Gandhinagar.

Anoop ( @blessedjule) is head of Research and Fund Manager at Capitalmind. He has worked as a Business Strategy & Operations Consultant with Kearney, and has held various leadership roles at Honeywell, Zomato, and Microsoft. He completed his MBA from the Indian School of Business (ISB), and a Bachelor of Engineering from Mumbai University.

Fun fact: we had an AMA with Deepak, more than six years ago, back in December 2014

Please add your queries here if you cannot be there in the audience for the AMA. We'll field these in front of Deepak and team, during the AMA.

Do reach out to us if you're having difficulty in joining our Discord.

EDIT: This AMA is in the books, recording is available on our YouTube channel:

Also, /@jenjust42day has kindly shared their notes from AMA, check out their note here!

 

[jenjust42day]

@crixus123 Some notes from the AMA

• Inflation
  • High WPI reported in May 2021 (13%) is an anomaly. Inflation data was not collected in Apr-May 2020 and was derived from Jun data. Oil traded at a negative price in May 2020. The trend will not continue but will be a bit anomalous for the next few months.
  • Inflation (CPI) in India is mostly food and fuel
  • Fuel costs - 5% of expenses - have gone down since the pandemic due to reduced office/leisure travel during the pandemic
    • Phone bills - /@notalkb4coffee says went from 10K/month/person to 10K/year/4 people
    • Fuel costs - 5% of expenses - have gone down since pandemic due to reduced office/leisure travel during the pandemic
    • Education - Can be high, but that is a personal choice on how much you spend
    • Healthcare - High during COVID
  • Shipping Containers globally is 10X expensive compared to pre-pandemic due to lockdowns and backlogs at ports. Will improve in the next 6-12 months.
  • The cost of getting things to smaller towns in India is trending downwards
• How to think about the risk for the new class of debt investments provided by companies like WintWealth - Covered Bonds
  • High risk
  • Backed by Gold but you don't know if the Gold actually exists until you see it. Have to trust the NBFC
  • Cannot do anything if the NBFC goes out of business
• PMS/AIF
  • PMS is when you have an investable surplus of 50 lacs+
  • In CM PMS you directly invest, in AIF you buy units of the AIF, and the AIF invests for you
  • AIF is for the ultra-rich and provides a different kind of risk profile for these investors
    • Long-Short strategies - high tax rate
  • How to pick a PMS?
    • There are sites like PMS Bazaar and PMS AIF World
    • But the data is self-reported by the PMS, so you have to take their word for it
    • CapitalMind PMS is more transparent and provides daily NAV equivalent and invoces for fees charged
    • Most PMS will not provide an invoice with breakdown of fees if you ask them for one - that's one way to evaluate a PMS
• Upcoming startup IPOs - Zomato, PayTM
  • Feels these companies are very well positioned due to their deep tech expertise
  • Did well during the pandemic. Likely to grow in the future.
  • Example of Amazon. Crashed 90% during 2000 dot-com crash. Recoverd but kept going down 20-30% every few years. 20 years later is top 3 global market cap
  • There are risks associated with growth and loss of market share
  • Lots of capital available. IPOs being subscribed 10-100x.
  • Also, opportunities will be available in companies like Jio Platform when it lists. Currently, Jio is a private subsidiary of Reliance
  • Sidenote - Indian IT companies like Infosys, Wipro, TCS listed in the US because their customers could then recognize the company, see the growth in the stock price, and have more confidence in using them as their supplier.
• Investing in companies whose products you do not like (Eg. LIC because ULIPS, ITC because tobacco)
  • Investment philosophy is different from how you think about other things
  • If you go to the extreme you would not invest in bank FDs either because banks also do things you might not like
  • Google/Facebook make money on top of tracking you across the web. Would you not invest in them?

 

[premier3092]

@crixus123 If this AMA was recorded, could that be shared here too?

 

[crixus123]

@premier3092 Yes, it was recorded. There you go.

 

[jenjust42day]

@crixus123 To the CM team: How much of your personal wealth do you invest in your own funds/strategies?

 

[notalkb4coffee]

@jenjust42day I have 75%+. I will probably increase it further as I put nearly all my monthly savings back into the PMS

 

[ghassen]

@jenjust42day Roughly 40% of my liquid net-worth in invested in the PMS. Will bring it up to 100% over time. Deepak's a higher % AFAIK.

At least for me, it's just more convenient to use the PMS infrastructure to manage instead of DIY.

 

[jenjust42day]

@ghassen Thanks @uptickr_!

Knowing you have skin in the game gives investors a lot more confidence in CM strategies.

 

[suzyaussie]

@crixus123 I joined late, Have you talked about the recent correction that might happen in the market? If no can you please tell us more about your opinion.

 

[suzyaussie]

@notalkb4coffee

 

[notalkb4coffee]

@suzyaussie You might want to check https://www.reddit.com/r/IndiaInvestments/comments/o13bri/discord\_voice\_ama\_with\_deepak\_shenoy\_capitalmind/

 

[susiequeii]

@crixus123 Do you think index funds for nifty mid 150 and nifty small 250 a good palce to invest considering the corporate governance issues with the underlying companies
?

As a new and noob retail investor in this space,is it better for me to stick with actively managed funds whose managers will attempt to avoid these companies?

 

[mymayome]

@crixus123 Unable to accept invite

 

[caritaslumen]

@crixus123 Do you believe that someone with 3cr plus portfolio should use guidance from advisors or PMS?

Edit: Basically does portfolio size matter if you want to do passive vs someone doing active investment for you?

 

[ghassen]

@caritaslumen In my experience, as one gets wealthier, they attract a lot of people who want to sell them unnecessary investments. A good advisor helps you filter out all this noise.

 

[ffreplica515]

@crixus123 I invest in mutual funds but am looking to invest in the stock market as well. But I want to invest in stocks diligently and not on someone else's advice. Could you please share some good resources (reading material/books/Youtube channels, etc) from where I can learn about the stock market? I'm aware just about Zerodha.

 

[amanwalking]

@crixus123 Another question have a few friends who are in US and UAE non Indians who would like to invest in Indian markets is there a way individuals can not institutions invest in India?

 

[blessedbeginning]

@crixus123 shall we sell adani stocks now? And maybe when it stops falling buy them again.

 

[notalkb4coffee]

@blessedbeginning

shall we sell adani stocks now? And maybe when it stops falling buy them again.

I wish I could answer that but honestly I don't know. If you're playing momentum, you want to deal with them the way the momentum system says, rather than to take active calls like this

 

[dgan]

@crixus123 Thanks for taking your time for the AMA, I am an active listener of your podcasts.

Would you recommend your clients to invest in a company whose products you do not 100% agree with? If yes, why?

Context: Regarding LIC IPO. It is generally frowned upon in the investors circles (like this sub) that ULIP is not ideal for investors as a lot of investment amount is lost to expenses. LIC being the biggest provider of these policies is something we actively avoid. Should someone invest in the IPO?

Ofcourse we have very less info on LICs various businesses, but would love your to hear your thoughts.