Introducing “The WeekendInvesting Newsletter”

Another brand new initiative from our Research Desk is The WeekendInvesting Newsletter. This is a daily newsletter that summarizes all the stories we cover during the day(market nuggets), including the daily byte that we shoot every evening. This newsletter will be delivered to your email every evening on market days, providing you with a wealth of market-related information. The newsletter includes both summaries and long-form blogs for all the market nuggets covered. These blogs are also linked to the videos we shoot, so you can choose to watch or read the content according to your preference.

Check out our past newsletters.

From the Research Desk of WeekendInvesting

Do you think about Compounding ?

In the world of investing, there is a concept that often gets overlooked but can have a profound impact on your financial success: compounding. Compounding refers to the reinvestment of profits earned from your initial investments, allowing them to grow at an exponential rate over time. While this concept may seem simple, its effects can be truly remarkable.

The Hidden Benefits of Real Estate !

Real estate investing is a topic that often raises questions and doubts. Many people wonder why it’s important to invest in real estate when other investment options seem more liquid and offer higher returns. In this article, we address these concerns and provide some key pointers on why real estate should be a part of your investment portfolio.

Respect the Liquidity !

In this article, we delved into the relationship between liquidity and asset valuation, using a real-life example to shed light on this critical concept.

Can Nifty do 24-25K by May2024 !

The current market downturn may have left some investors disappointed, but history suggests that January could bring a turnaround in fortunes. By analysing the NASDAQ average monthly performance, it becomes evident that January has consistently been the strongest month for the past 53 years. This data spans from January to December, revealing an average gain of 2.5% for January, making it the best performing month compared to November and December.

Can Index investing be a potential trap ?

In this article, we tried to examine the possibility of index investing failing by looking at two real-life examples: the Hang Seng market and the Japanese market. By analyzing these cases, we can gain valuable insights into the potential pitfalls of relying solely on index investing.

Should you Invest in large AUM funds ?

With the recent news that the Association of Mutual Funds of India has announced that the net assets under management (AuM) in the mutual fund industry has crossed the 50 lakh crore mark, it is evident that the industry is experiencing significant growth. This surge in AuM is quite impressive, considering that just three years ago, the figure stood at around 25 to 30 lakh crores. The industry has been growing at a compound annual growth rate (CAGR) of approximately 20% in terms of inflows.

Gold headed for $10000 this decade !

A popular analyst, Edward Gofsky believes that we are currently witnessing a similar consolidation phase in the gold market. We try to do a deep dive on his analysis and insights on gold.

These companies have larger market caps than many countries !

Index investing has gained popularity in recent years as a passive investment strategy. The idea is simple: rather than trying to beat the market by actively selecting individual stocks, investors can simply buy an index fund or ETF that tracks a specific market index, such as the S&P 500 or Nasdaq 100. This approach offers several advantages, including lower costs, diversification, and broader market exposure. However, there are growing concerns about the perils of index investing and the potential risks it poses to the financial markets.

Can India markets do a China ?

In the world of investing, it is essential to keep a close eye on trends and performance in different markets. By analysing data and comparing various investment options, we can make more informed decisions that will help us achieve our financial goals. In this article, I will discuss a fascinating chart that compares the performance of two ETFs – the MSCI China ETF and the MSCI India ETF – over the past decade.

How much Toll are you willing to Pay ?

The highway is a symbol of efficiency, speed, and convenience, allowing us to reach our destinations quickly. But to enjoy the benefits of a well-functioning highway, we must pay a toll. We willingly pay this fee because we understand that it is necessary for the upkeep and improvement of the infrastructure that enables our smooth and efficient travel. In the world of financial markets, a similar concept applies. To achieve higher returns, we must be prepared to bear the toll of volatility.

Markets this week

Nifty 50 experienced a slight dip at the beginning of the week but quickly rebounded in the last two days, reaching an all-time high. The index has been consistently strong for the past ten to eleven weeks since hitting its bottom in October, indicating a positive trend.

Benchmark Indices Overview

In terms of benchmark indices, the Nifty gained 0.9%, while small caps, Nifty Next 50, CNX 500, CNX 200, and mid and small cap 400 also made gains ranging from 0.7% to 1.2%. Notably, the small-cap stocks have been performing exceptionally well, outperforming the benchmark indices by wide margins. The Nifty Next 50, a large-cap oriented index, has also surprised with its impressive performance, exceeding the CNX 500 and CNX 200.

WeekendInvesting Overview

Several strategies and sectors also displayed noteworthy performances. Mi Evergreen and Mi 20 experienced significant boosts, gaining 3.6% and 3% respectively. The Mi 35, Mi MT Allcap, and Mi ST ATH were not far behind, registering gains ranging from 2.7% to 2.8%. It’s interesting to observe how the returns of certain strategies, like the Mi MT Allcap, can vary significantly from year to year, highlighting the lumpy nature of returns in the market.

Sectoral Overview

Analyzing sector performance, it was the IT sector that led the way, with a 4.8% increase, following positive results from companies like TCS and Infosys. Real estate also continued its strong run, with a 4.4% gain, resulting in an impressive 127.5% increase for the financial year. Other sectors that experienced gains included infra, energy, and autos, while FMCG and Bank Nifty saw slight declines.

When examining the broader market picture, it is evident that real estate, energy, pharma, public sector enterprises, media, and infrastructures have been on the rise, while metals and commodities have experienced recent declines.

Spotlight – Mi MT Allcap’s Resurgence

Mi MT Allcap has done exceptionally well right since its launch in Nov 2018 completing a strong CAGR of 36% compared to that of 16% on the CNX 500 index.

There was a period of stagnation on the strategy last year where many had questioned the effectiveness but we saw a massive bounce back in FY 24 where the strategy has clocked a whopping 75% so far.

Phase 1 – Outperformance

Phase 2 – Underperformance

Phase 3 – FY 24 Outperformance

Rebalance Update

We give advance notice here on the upcoming changes in your smallcase for Monday. This advance notice can be used to ignore Monday’s update if there is no change. If there is a change indicated you can use the smallcase app or log in to weekendinvesting.smallcase.com to see the rebalance. A backup email is sent by mid-day Monday if you have not rebalanced by then and yet another one a day later.

Note: We are not including LIQUIDBEES as an ADD or an EXIT count.

WeekendInvesting Strategies Performance

WeekendInvesting Products – LIVE Index Data

Many of you had asked us to make the index series of all WeekendInvesting Products available so that you could perform your own analysis and studies. You can find a link to the LIVE sheet here and also on the HUB under the support column in the content tab.

WeekendInvesting Telegram and YouTube Channel

We post daily content related to investing on our Weekendinvesting Telegram Channel and YouTube channel to help our community take stock of the performance of markets, sectors & our products and touch base upon a new topic every day. We look forward to having you all there! Several videos in this blog are from this series.

Introducing M Profit

That’s it for this week. See you in the next week‘s review