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

Active Vs Passive investing

Active fund management is a tough task. Beating the benchmarks is not easy, and this is evident when we look at the performance of various funds. For instance, in the Nifty Next 50 index funds, returns range from . . . .

This bull run isn’t done yet

A fascinating chart from Bloomberg Intelligence shows how the S&P 500 has performed during four major bull runs over the past century. This chart compares the current bull run from 2019 to 2024 with three other significant periods: 1963 to 1968, 1995 to 2000, and 1924 to 1929. By normalizing these periods to the current market move, we can see . .

Ride on the India Growth Story

India’s GDP growth rate has shown a remarkable pattern from 1999 to 2024, as depicted in a chart from Bloom Research sources and Jefferies. Most of the time, India’s growth has been in the 7% to 8% range. This consistent growth showcases the . . . .

Insight into Fund overlaps

A recent analysis by Stable Investor highlights the overlap between various flexicap funds. This chart includes funds like Parag Parikh, JM Flexicap, HDFC Flexicap, and Quant Flexicap. It helps investors see how much one fund overlaps with another. For example, the overlap between . . . .

India vs. China GDP Growth Comparison

From 1980 to 1990, India grew at 5.5%, while China was nearly at 10%. In the following decade, India’s growth slightly increased to 5.7%, with China maintaining its 10% growth. Between 2000 and 2010, India saw a significant rise to 7%, but China continued at 10%. From 2010 to 2022, India grew at 6.2%, closely trailing China’s 7%. However, in the last six years . . . .

Momentum Factor Rules

Factor investing is a strategy that involves choosing stocks based on specific characteristics or “factors.” Some common factors include momentum, quality, value, and growth. Each of these factors has . . . .

Strong Top 10 weights pulling the index

A recent table from Bloomberg as of July 1 reveals interesting insights into the performance of the S&P 500. In 2024 so far, the S&P 500 has risen by 14.5%. Looking back, 2023 saw a rise of 24.2%. This pattern  . . . .

Sector Funds can be risky

Edelweiss Mutual Fund recently shared an important chart on Twitter about the returns of various sectors on a rotational basis. The chart covers the last twelve years and includes . . . .

WeekendInvesting Specials !

Won’t there be 5% plus falls anymore ?

Are we currently not in a bull run ?

Markets this week

This week, Nifty remained flat despite significant market volatility. After a couple of days of gains, a holiday interrupted the momentum, followed by a rapid surge on Thursday likely due to short covering and positive TCS results. However, by Friday, all gains were erased, closing the week where it started. While Nifty saw no net change, other market segments experienced declines. The weekly candle pattern, an inverted hammer, often signals a potential top and suggests several weeks of consolidation ahead. Given the strong uptrend since March 2023, a cooling-off period seems likely, especially with cautious expectations around the upcoming budget.

Benchmark Indices & WeekendInvesting Overview

This week, Nifty remained flat, but other indices experienced declines. The CNX 200 and CNX 500 both fell nearly 1%. Midcaps and Smallcaps were hit harder, with the Mid-Small 400 dropping 2.5% and the Smallcap 250 losing 2.9%. Surprisingly, the large-cap Nifty Next 50 fell 3.2%. Despite its recent strong performance, up 17% compared to Nifty 50’s 9%, Nifty Next 50 also showed vulnerability to downside risks.

This week, all WeekendInvesting strategies were in the red. Mi 20 lost the most at 6.8% but remains up 32% for FY25. Mi NNF 10 and Mi 35 fell by 6% and 5.6%, still up 26% and 25% respectively this financial year. HNI Capital Compounder dropped 5%, maintaining a 32% gain for the financial year. Mi ST ATH was down 4.7%, clocking 7.7% for FY25. Mi ATH 2, in line with the CNX 500, fell 3.7%. Mi EverGreen dropped 3.7% but is up 24% for FY25. Mi MT Allcap, down 3.6%, aligns with CNX 500 returns. HNI Wealth Builder and Mi 30 lost 2.9% and 2.2%, respectively. Mi 25 was down 2% but up 14% for FY25. Mi India Top 10 fell 1%, in line with Nifty 50. Not every strategy beats benchmarks consistently, but over time, they aim to outperform.

Sectoral Overview

This week, IT stocks and FMCG were the clear winners, signaling a shift towards defensive sectors. While FMCG performed well, pharma dropped 0.9%. Metals, public sector enterprise stocks, and commodities experienced significant losses, aligned with global declines. Energy stocks also fell. Real estate, which is leading in FY25, remained flat, showing no signs of decline. PSU banks, slow at 4.2% for the financial year, saw a modest gain of 1.4%, possibly due to budget expectations. Overall, it was a mixed week with varied sector performances.

In the very short term, sectoral momentum is favoring IT, FMCG, and consumption. These sectors show strong average momentum rankings across various periods. Conversely, energy stocks have plummeted from rank five to eleven, and public sector enterprise stocks are also declining. Consumption has surged, likely due to anticipated tax relief for salaried taxpayers in the upcoming budget on the 23rd, which could boost consumption. The market seems to be in a cooling-off phase for the rest of the month, awaiting a new trigger. It is hoped that the budget will maintain the current equilibrium without causing disruptions. The election top in the charts is seen as a good support level if further corrections occur.

WeekendInvesting Strategy Spotlight

We are thrilled to announce that Mi 20 and Mi 35 have completed three years on the smallcase platform. Mi 20, a mid and small cap strategy, and Mi 35, a pure small cap strategy, have shown exceptional performance right since launch.

You can enjoy a 20% discount using the code AVR20. This code will be valid only till the end of 21 Jul 2024 (Sunday)

We encourage new users to approach these strategies with a long-term mindset of at least five years, especially considering the current elevated situation in small and mid caps. This will provide a better runway for the strategies to perform optimally.

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

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.

Check out M Profit

That’s it for this week. See you in the ne