DISCUSSION ON VARIOUS FUND PERFORMANCE - 10.11.24
- Capt D. Ganesh Raja
- Nov 11, 2024
- 4 min read
From the desk of Capt.D.Ganesh Raja
DISCLAIMER
Please be informed that the author of this blog by Capt Ganesh Raja Dhanuskodi (Hereinafter called Capt Ganesh) is not a SEBI registered Research Analyst or Financial Advisor. Capt Ganesh writes this blog to express his views based of more than two decades of experience in capital markets and based on the Quant system which he has invented and he does not do this for “consideration” as per SEBI regulations, which means he does not receive economic benefit through it. Readers of this blog must seek advice from registered Investment Advisors / Research Analysts before taking any trading or investment decisions.
Capt Ganesh has been investing and trading actively since 2001, building trading models since 2013 and has invented an AI based intraday trading system, which has a pending patent approval.
Dear friends,
There is intense debate going on in many of the investment related groups regarding the recent market fall. In some of the groups there is recommendations based on half-baked analysis as to how some stocks have fallen 30 to 40% and that itself warrants entry into those. In another group there is fervent proposal that FIIs are abandoning Indian markets in concert.
In today’s age of social media by “copy paste “mode, there are many who dishing out recommendations based on that. Is there a problem with that? Everyone is allowed to speak their mind out isn’t it? The problem if one is speaking out for the sake of having a following, without having investigated in an earnest way, eventually the cat will be out of the bag and one will stand exposed.
I am going to be brutally honest here because experience based on trials and tribulations will always be part of one’s psyche. Also, when you know that you have done the mistake in the past and witness that it others, there is not much analysis required in dissecting the flaws. This is exactly what I am seeing in these groups. To be fair to them and also not to sound pompous, I enquire if there is merit in what they are saying. But when it is not the case, I have to state that it is a dangerous game, especially so because the large number of people who are following those advice is placed at peril due to their perceptions about the knowledge of those people they are following.
In my investment journey I have met many experts, industry veterans and even few fund managers and barring a few, much was desired out of them in the field they were operating in. One tries to hide in layers and layers of jargon, curated talks, fancy theories etc.
Truth of the pudding is in eating it, which means one must take direct action on one's own research on one's own portfolio.
Market is a complex mechanism and myriad factors at play.
One is allowed to make mistakes and many a time, but as long as one is honest to his or her investment rationale, it is justified even if underperformance is there. On the contrary if one is hiding the underperformance, using various means stated above, it is totally not acceptable. How a common man is supposed to know? It is not possible to know and that is why I urge people to do due diligence, with whatever resources available, so that they follow them based on that or entrust their hard-earned money.
I am not here to be politically correct and anyhow markets will expose the hollowness with time.
After all these tall talks am I walking it , is something which needs to be examined and that’s what we are going to do here by comparing returns generated in my personal portfolios. In recent correction, mid cap and small cap funds lost 8.8 per cent and 6.9 per cent from their respective all-time highs and analysts are saying the worst is not over
Let us compare with Nifty and best performing funds. Sector funds have been left out of the comparison.
CAGR RETURNS | |||||
FUND / PORTFOLIO | 1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | 15 YEARS |
QUANT SYSTEM | 60.88% | 38.24% | NA | NA | NA |
PERSONAL PORTFOLIO 1 (WITHOUT DIVIDENDS) | 85.64% | 43.57% | 33.88% | 19.25% | 18.94% |
PERSONAL PORTFOLIO 2 (WITHOUT DIVIDENDS) | 88.11% | NA | NA | NA | NA |
NIFTY | 28.4% | 10.25% | 17.6% | 11.68% | 11.8% |
BANDHAN SMALL CAP FUND DIRECT GROWTH | 63.94% | 28.31% | NA | NA | NA |
QUANT MID CAP DIRECT GROWTH | 35.52% | 24.93% | 28.10% | 19.76% | NA |
JM Value Fund Direct Plan-Growth | 45.68% | 25.06% | 26.23% | 18.93% | NA |
ICICI PRUDENTIAL QUANT FUND | 22.70% | 14.45% | NA | NA | NA |
Note: In Personal Portfolio 2 , the investments were staggered and the calculations are not based on rolling annual returns, which would approximately work out to 125%. We leave it out for the sake of simplicity.
Readers of this blog are aware about the methodology of the decision making process, which I have tried to cover in details over the years. From here onwards I would be focusing on clearing the investment advisor exam and the framework for formally managing money , which has lot of regulatory compliance to do. In addition, I wish to make videos for various investor classes from beginners to advanced levels. I will post the the Quant trigger for mock portfolio directly.
Please check Nifty returns, as per link given below:
chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://nsearchives.nseindia.com/content/indices/25_Years_Journey_of_Nifty50_2022-01.pdf
For funds performance check link below:
RETURNS TILL DATE SINCE 04.07.20 : 165.12.% (AS OF TUESDAY 08.11.24 CLOSING)
LEVERAGE FOR EXISTING MOCK PORTFOLIO TRIGGERS: 1.30
SYSTEM EXIT DELEVERAGE: NA
LEVERAGE FOR NEW MOCK PORTFOLIO TRIGGERS: NA
TOTAL LEVERAGE: 1.30
ASSET ALLOCATION PROFIT POTENTIAL FOR NEW PORTFOLIO TRIGGERS : NA
TIME PERIOD OF TRADES RECOMMENDED : 15 DAYS TO 3 MONTHS.
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