In today’s episode, we break down profit shares and performance fees, one of the most debated topics in the asset management industry. Are they a fair way to align incentives, or just another way for fund managers to charge more? We get into the nitty-gritty of who can charge performance fees in India and how it works, the meaning of terms like man…

Deepak and Shray analyze the implications of this budget on consumption, manufacturing, investments, and its impact on your wallet. ---- More about us: https://cm.social/pms Connect with us : https://cm.social/pms-connect Deepak's Twitter: @deepakshenoy Shray’s Twitter: @shraychandra Capitalmind Twitter: @capitalmind_in…

In this episode, Deepak and Shray dive deep into the dynamics of the Dollar-Rupee equation. With the rupee at 85 to the dollar, what does this mean for us as investors and consumers? Are we losing 3-4% in dollar terms every year without realizing it? And if so, does investing in global assets provide a better hedge? Join us as we break down histori…

Ever wondered if the Indian stock market still needs Foreign Institutional Investors (FIIs) now that domestic investors are stepping up? Shray and Deepak chew over this hot topic in our latest episode. They examine questions like whether foreign investors are responsible for recent market declines, who the primary owners of Indian companies are, an…

In this episode of the Capitalmind podcast, Deepak and Shray dive into SEBI's recent report analyzing the profits and losses of F&O traders. The report reveals a staggering statistic, showing that over 90% of individual traders have lost money in F&O trading in the past few years. They explore the reasons behind these losses, the demographic impact…

In this episode, recorded in early October 2024, we’re diving into a topic that’s on everyone’s mind: Is holding cash a smart move in these unpredictable markets? We’re in what some are calling one of the most “unloved” bull markets—stocks keep rising, but investors (ourselves included) are uneasy, waiting for the other shoe to drop. To help us unp…

In this episode, Deepak and Shray dive into the intricacies of mutual funds, Portfolio Management Services (PMS), and Alternative Investment Funds (AIF). We analyze the tax benefits of mutual funds, highlight the liquidity advantages, and compare them with PMS and AIF in terms of fees, transparency, and investment flexibility. We also discusses why…

In this episode of the Capitalmind Podcast, we take a deep dive into the world of unlisted and private securities. We’ll cover key topics such as: What exactly are unlisted and private securities? How do you value them, and what complexities should you watch for, like liquidation preferences and ratchets? Who can you sell these securities to, and w…

In this episode of the Capitalmind Podcast, Deepak and Shray dissect the surge in New Fund Offerings (NFOs) by mutual funds, dissecting why fund houses are launching new schemes and who truly benefits from them—whether it’s the AMC, the customer, or intermediaries like distributors. We also discuss the economics of fund distribution, the role of in…

Picture this: You’re at your favourite bakery, and you overhear that a celebrity is about to place a massive order for your favourite pastries. You rush to buy them all up before the celeb can, hoping to sell them back at a premium. That, in essence, is front running in the financial world. We discuss how people pull off this trick and, more import…

Recently, the mere hint of an inheritance tax proposal sparked a mini-political crisis? Thanks to a quick government rebuttal, it’s off the table—at least for now. But that’s not where the story ends. As always, Deepak and Shray go head-to-head, weighing the merits and pitfalls of this hot-button issue. We’re not just looking at the problem from 30…

In this comprehensive discussion, Fund Manager and Head of Research Anoop Vijaykumar and Shray Chandra distil the key lessons from over five years of managing the Capitalmind Adaptive Momentum portfolio. Get a concise overview of the principles of momentum investing driving the portfolio’s success. Learn from our real-world lessons on why momentum …

Have you ever wondered why finance seems to have a forgiving nature? From the sins of the past being easily forgotten to the belief in second chances, we'll explore the nuances of forgiveness in the financial realm. We'll dissect the tactics some "for education purposes only" players use to enrich themselves at the expense of their students. It's a…

The idea that finance companies want to do everything from payments to lending to broking to investments is strange - why not just be good at one thing? It’s a simple explanation, it turns out. Find out more about the business of money in a language you can easily understand, through the words of Deepak Shenoy and Shray Chandra. Capitalmind manages…

Ever wondered why circuits are in place? It all started on Black Monday in 1987, where a 25% market correction prompted the introduction of market-wide circuit breakers in the US. These limits aimed to ensure market maker solvency and prevent panic-induced trading. Fast forward to 2001, and India also introduced circuits to handle intraday market v…

In today's episode, we delve deep into the recent actions taken by the Reserve Bank of India (RBI) towards the end of 2023 and the ensuing ripple effects they've set off. The RBI, often the silent architect of our financial landscape, has made strategic manoeuvres that reshape the terrain for banks, non-banking financial companies (NBFCs), and borr…

Join us on Capitalmind Podcast, where we demystify the world of finance without the jargon. In today’s episode, talk about the asset management industry in India and what’s in store for the future. Now get this - Mutual Funds own only 8% of Indian companies, while retail investors own 9%. Let’s rewind. In 2005, despite impressive returns, MFs didn’…

Ever wondered about the whole money thing – how it's made, where it comes from? Well, in this podcast episode, we're breaking it all down, and without using any jargons. We also promise that this podcast will not remind you about an economics class. Because, it's not a lecture on economic theories. Nope. It's more like your friend explaining things…

If you are even a little active on social media, especially Twitter, you would have witnessed the exponential increase in tweets related to options trading. Today, we are are going to talk about that - Indian's going gaga over options trading. Deepak & Shray, take a detailed look at this fascinating phenomenon and tell you all that you need to know…

Welcome back to the Capitalmind Podcast – a place where we dissect the nuances of finance and investing, in a world that never stops changing. Your hosts, Deepak & Shray, are here to de-clutter yet another topic in their lucid and candid style. In today's episode, we're zooming in on Portfolio Management Services (PMSes), a vehicle for your long-te…

You've tuned in to another episode of The Capitalmind Podcast, where we tackle a question that's been on your mind: "There's a lumpsum in hand, what's your next move?" In a world where SIPs are all the rage, we're steering the ship towards understanding how to strategically deploy a substantial lumpsum amount. Deepak & Shray walk you through these …

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 thr…

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 …

"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 t…

"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 o…

“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…

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…

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" busi…

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…

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&P 500 down about 20%, and yet, the Indian markets ended up 4%. If anyone got this spot on, they could still be terribl…

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 co…

Of late, we have been discussing macro trends that affect the stock markets, the economy, and as an extension, the world. We have been zooming out to capture the big picture painted by investors, regulators, and the invisible hand of Mr. Market. In this episode, Deepak & Shray break from the trend and do something different. Rather than zooming out…

As we slowly settle into the post-pandemic era, one of the hallmarks of this period has been higher inflation than we have seen in the recent past. In response to rising inflation, central banks across the world have responded with a fierce interest rate hiking excursion. As a consequence, neither of the asset classes–stocks, or bonds, have perform…

RBI released a discussion paper that said: We’ve let you good people live all this time with “free” payment systems, so should we allow banks to start charging now? Specifically for UPI, which has reached volumes of 10 lakh crore rupees per month? And should we charge merchants? Deepak's answer is a big NO. He firmly believes that the payments ecos…

Recently, as of 7th September 2022, total Demat accounts in India touched the 10 crore mark. This is a staggering increase from 4 crore Demat accounts in Mach 2020. This alone is a testimony of increased participation and inclusion of individuals in Indian markets. More and more Indians, especially youngsters, are taking to investing in equities en…

Markets are slaves of earnings and liquidity. Liquidity has taken prominence after the coronavirus outbreak. At first, central banks across the world increased liquidity by cutting rates and helping their populace to live through the pandemic. Then the after effects of increasing liquidity hit – increased inflation. Now, the same banks are sucking …

Crytocurrencies were all the rage in past few years on account of rising asset prices and volatility. Now, they are going through a bear market that has witnessed some popular currencies going totally bust. This pehnomemnon of an "asset class" going from hot to untouchable is not new. We've seen this again and again in different forms and proportio…

In this episode, Deepak and Shray unravel different aspects related to investing in gold. Gold has been around as a store of value for a couple of millennia, probably longer, because of how little there is and how difficult it is to get out of the earth. Now get this - all the Gold mined would fit in a crate with sides of 21 meters. That’s roughly …

Two engineers get together to discuss two life essentials - food and money! Our food expert is Krish Ashok. Ashok is Global Head, Digital Workplace at TCS. He is a techie, a musician and an author. He talks about the science behind food, the history of food and offers a lot of food for thought for us to explore further. If you are interested, a goo…

Kirjoittanut Capitalmind

What happens when a company goes bankrupt? Why do investors buy their stocks that are headed to zero? In this episode, we explore how the Insolvency and Bankruptcy Code (IBC) has changed the game. Deepak explains the many nuances of current regulations and how they've evolved. We dive into examples such as Bhushan Steel, Sintex and Ruchi Soya - whi…

There is a lot to unpack about this new digital currency RBI is talking about. Deepak and Shray built up the discussion by pondering over successive questions. Deepak takes us through how cryptocurrencies currently work. This sets up the context to the current ways of handling digital currencies and we move on to discuss the RBI-backed digital curr…

As Indians, we discuss Inflation only during elections which makes it less of transient and more of seasonal! But, as investors, we discuss inflation a little more. The latest reason for it is the hammering of growth stocks across markets which is blamed squarely on inflation. In this podcast, we understand the practical concept of Inflation with e…

How do High Net Worth Investors invest SO much in IPOs? Nykaa's IPO saw Rs. 1,00,000 crores invested by the well heeled Indian investors. But not much of it is their own money - they borrow it. In this episode, Deepak and Shray unravel the dynamics of an IPO application for HNIs. From the rules of allocation, the big business of IPO funding, how HN…

On today's show, Shray asks Deepak about how to make sense of the past two years in the markets, macroeconomics, and the seeming irrationality of it all. They also talk about how to look at the year ahead. Highlights 2021 bad year with all the lives lost, but it happened to be good for markets with the number of IPOs at an all-time high NIFTY retur…

With technology comes great responsibility, says SEBI, as it attempts to regulate the algorithmic trading markets that have just started to evolve in India. The concept of “API” trading, through Application Programming Interfaces is the standard in the web and app-based world, but SEBI doesn’t want you to manage your own money programmatically. Or,…

How does P2P lending work in India? How safe is P2P lending? Deepak and Shray explore how the industry works, the risks involved and whether the returns are enough to justify the risks. Summary Banks keep a considerable spread between the interest they offer on a deposit and the interest they charge a borrower. So, some people think, why is the spr…

Episode 41 - Deepak sits down with returning guest Ruchir Kanakia, the founder of the insurance distribution company OneAssure to discuss our favorite insurance product - term insurance. Summary: How term insurance works for you and the company that sells it to you Debt or Dependents – the two reasons to buy term insurance How Covid and the fact th…

Episode 40 and we’re speaking to the fintech firm that just raised 40 Million dollars last week - Smallcase! Deepak sits down with co-founders Vasanth and Anugrah to talk about creating a new way to invest in stocks, investment lessons from the pandemic and what’s up next from the Smallcase team.Kirjoittanut Capitalmind

What is a Portfolio Management Service? How does it really work? Do they actually benefit their clients? In this episode, Vashistha and Deepak explore PMS' through their experience of running one at Capitalmind. They explain how the operations work, the pros and cons of different fee structures, quantitative strategies and how PMS' are different fr…