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

Investment insurance products can loot us

In today’s ever-evolving financial landscape, the quest for sound investment strategies often leads individuals down diverse paths. Recently, a compelling narrative emerged, shedding light on the experiences of an investor, Mr. Saurav Srivastav, and his 21-year journey with a LIC Jeevan Anand plan. With an initial investment of Rs 15,000 per year, Mr. Srivastav’s journey presents a fascinating case study, raising pertinent questions about the intersection of insurance and investment, and the implications thereof.

How much can Smallcaps fall ?

In the world of stock market fluctuations, it’s not uncommon for investors to experience moments of uncertainty. Recently, the small cap index has been on a downward trend, causing concern among some investors. The Nifty small cap 250 index, which reached a high of 15,500, has now dropped to 14,700, marking a decrease of about 5% from its peak.

The momentum magic

Are you under the impression that momentum investing is all about quick, frequent trades? Think again. Let’s debunk this myth by delving into the great story of Mi NNF 10, a strategy centered around the Nifty next 50 index. Contrary to popular belief, momentum investing isn’t always short-term; it can span over two years or more, depending on how the momentum unfolds in certain stocks.

Importance of Marketcap vs price

Investors have been pondering a crucial question: can Yes Bank reclaim its glory days and soar back to Rs400, where it peaked in 2017-18? The rollercoaster ride of Yes Bank’s stock, from Rs10 to Rs400, and back down to under ten, now hovering around Rs28, reflects a tough journey fraught with hope and disappointment.

The compounding kicks in the last few years

Many investors focus on maximizing their monthly SIP contributions or chasing high returns, but what truly drives wealth creation in the long run? This article explores the surprising answer: time and compounding.

Same sector stocks can behave differently

When analyzing potential investments, focusing solely on industry trends can be a costly mistake. This insightful comparison between Uber and Lyft, two major players in the ridesharing industry, perfectly illustrates this point.

Why Gold is not just a hedge !

In a world brimming with economic and political uncertainties, finding investment avenues that offer both stability and growth can be a daunting task. Enter gold, the gleaming precious metal that has captivated investors for centuries. In this insightful analysis, we delve into the compelling case for holding a significant portion of your portfolio in gold, particularly for Indian investors.

Will it be a smallcap or largecap rally next ?

When it comes to the performance of small-cap companies, we witness a fascinating divergence between the established markets of the US and the burgeoning landscape of India. While the past decade in the US has been marked by large-cap dominance, India paints a starkly different picture, offering a potential goldmine for savvy investors. Let’s embark on a journey to unveil this intriguing trend.

Pareto Rule in Investing

Have you ever wondered why some investments skyrocket while others languish? The answer might lie in Pareto’s principle, also known as the 80/20 rule. This principle suggests that in many contexts, roughly 20% of the causes are responsible for 80% of the effects. In the world of investing, this translates to a powerful truth: a small handful of stocks will likely generate the bulk of your returns. Lets us look at an interesting example.

The Golden Rule of catching falling stocks

Investing can be a thrilling rollercoaster, but when stocks plunge, it’s easy to feel like you’re clinging to a plummeting cart with no brakes. Especially for discretionary investors who don’t follow rigid rule based strategies, navigating falling stocks can be a nerve-wracking experience. But fear not, intrepid investor! This article unveils a powerful tool to help you avoid getting trapped in the downward spiral: the 2-day high closing rule.

Markets this week

Nifty 50 came back really well clocking 1.2% this week but finds itself near the resistance of the double top pattern around previous highs at 22100. The upcoming week will be very critical to see if Nifty 50 can get going on the next leg of uptrend.

Benchmark Indices & WeekendInvesting Overview

Smallcap 250 faced a bit of correction this week recording muted gains but still leads the FY 24 chart with a solid performance of 71%. Nifty Jnr has also put on a phenomenal show recording gains of 55% in FY 24.

Mi NNF 10 continues to do remarkable well clocking 3.6% this week extending its FY 24 gains to a stupendous 89%. Mi India Top was the second best performer this week clocking 2.8% gains followed by Mi ST ATH and Mi ATH 2. Mi India Top 10 has also performed exceptionally well in FY 24 for a Nifty 50 based strategy with gains of 58% compared to only 27% on its benchmark.

Sectoral Overview

AUTOs did really well to record 4.3% this week followed by PSE and PSU BANKS at around 2.7% each. METALS had underperformed significantly recording a loss of 1.5% along with FMCG losing around 0.7%.

On the FY 24 front, REALTY remains the topper clocking 128% despite the recent correction. PSE is the next sector to join the 100% club in FY 24 with PSU BANKS inching close to that coveted mark.

PSE continues to hold on to the #1 spot with some really consistent performance despite losing the Fortnightly and monthly top spot to PSU Banks. ENERGY & COMMODITIES have done well to hold on to the #2 and #3 spots. REALTY has slipped to #7 after losing steam in the last 30 days especially. The sector is still in #2 in terms of the 6 month performance. METALS have lost some ground while FMCG, MEDIA and BANKS continue their strong hold at the bottom.

Spotlight – Multibagger PFC in Mi MT Allcap

PFC (Power Finance Corporation) stands as a classic example of the impact of a multi year breakout. The stock was trapped between Rs 35 and Rs 135 for almost 13 years and finally broke out of this range in early 2023 and has now clocked a fantastic 3x from there.

Mi MT Allcap picked up this stock back in Jan 2023 @ Rs 123 and is currently a beneficiary of the the stupendous performance of this stock which has become a 3.4x bagger.

The above chart denotes the CAGR of Mi MT Allcap in the latest 3 year period. You can see that the strategy has seen a massive outperformance compared to CNX 500 by staying within a very healthy 3 year CAGR range of 35% to 45% while that of CNX 500 oscillated between 15% to 25%.

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 report