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 returned approximately 23% and has been positive for the 6th consecutive year India being top-heavy, from the income distribution standpoint caused the kid of market outcomes we saw Small firms got hit the most, and that may not be sustainable in the long run Markets don't care about death and destruction for sure. But what moves the market? We've normalized, letting go of our freedoms, and irrationality could be the new normal. Inflation could actually be a function of supply than demand If the market didn't go down in these pandemic years. How can we make any event-based predictions? The boom in startup funding. Has equity become cheaper than debt?  Read more at https://capitalmind.in

Lessons from 2021, the year irrationality went viral

Capitalmind looks at stocks, bonds, funds and the macro to bring you their view on the Indian financial markets. We discuss all things related to investing at our focussed podcast that keeps it simple. For more, go to capitalmind.in and to invest with us, visit capitalmindwealth.com

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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 30,000 feet; we’re getting into the weeds, examining real-life scenarios and potential solutions that could impact you and your future. Government Finances: Can an inheritance tax significantly boost government coffers? Or is it just another drop in the ocean of fiscal needs? Societal Impact: Will taxing inheritances create a more industrious society, or will it just penalise those who’ve worked hard to create wealth for their children? Implementation: What if we set the bar high, say at 100 crores or even 1000 crores? Would this make the tax more palatable and targeted? Practical Hurdles: Imagine inheriting a house or a business. Sounds dreamy until you hit the wall of unrealised gains and logistical nightmares. We’re peeling back the layers on these challenges. Future Planning: If you’re expecting a windfall 5 or 10 years down the road, how should you plan your finances today? Spoiler alert: It’s not as straightforward as you might think. So, grab your headphones and tune in. Whether you’re a financial novice or a seasoned investor, this episode promises to challenge your thinking and maybe even make you laugh along the way.  Timestamps: 00:00 Introduction and Disclaimer 01:25 Should we have an inheritance tax? 07:36 What if inheritance tax is imposed solely on the wealthy? 15:42 Creating a Trust to offset tax 25:04 Are there significant practical difficulties associated with inheritance tax? 35:08 Doesn't implementing an inheritance or wealth tax help reduce asset prices or control inflation? 42:58 How should one prepare for potential inheritance taxes in the future?

The Hulla Over Inheritance Tax

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 investing works for long-term wealth creation   00:36 Introduction 01:54 Momentum strategy in the last 5 years 03:30 Difference between the fundamental and quantitive styles 08:00 Random correlations when backtesting a quantitive strategy 10:30 Capitalmind Adaptive Momentum strategy 15:05 Why does momentum investing work? 18:54 Lessons learned from 5 years of managing momentum strategy 26:00 Will momentum stop working 29:30 How can we get more out of the momentum strategy?

Momentum Investing in India with Anoop Vijaykumar

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 sobering reminder to always question the motives behind the message. We uncover the darker side of startup culture, where founders blur the lines between innovation and exploitation. It’s a cautionary tale for aspiring entrepreneurs and investors alike. Deepak & Shray, in their quintessential style, discuss nuances of investing and finance in this latest episode of Capitalmind Podcast.   Show Notes & References            00:00 Introduction and Disclaimer 01:35 Why is finance a uniquely forgiving industry? 19:37 Deepak’s views on AT 1 Instrument 28:23 How do customers react to their fund managers' pros and cons? 57:57 Critical look at how some financial educators profit heavily from courses that may not benefit students as promised. 01:05:40 A look into the darker side of startup culture where founders misappropriate funds and then start new enterprises. 01:12:00 Delving into the challenges faced by companies when customers misuse their power.                            

All is forgiven in the financial markets

 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 Rs. 1700+ cr. as a SEBI-registered PMS, and has quantitative investing strategies that use extensively tested factor data to invest into stocks. Our flagship Adaptive Momentum strategy has outperformed the market indices over 5+ years.  References:   00:00 Introduction  00:17 Why does every company do everything in financial services?  12:41 Why aren’t banks more aggressive in growing and pricing things lower?  26:40 Discussion on the success of Bajaj Finance and arbitrage between Banks and NBFCs  36:46 Why aren't banks aggressive on lending ? What's the issue with lending?  56:49 Deepak explains the Indian Bankruptcy code  01:07:13 What can we do to fix this?    More about us: https://cm.social/pms  Schedule a call with us: https://cm.social/pms-connect    Deepak’s Twitter: @deepakshenoy  Shray’s Twitter: @shraychandra  Capitalmind Twitter: @capitalmind_in  Deepak's first book: http://amzn.to/3CgkGea              

Super-money: Why everyone wants to be everything in Finance

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 volatility. From the Nifty's inception to the imposition of index-level circuit filters, the Indian market landscape has witnessed a steady evolution in its approach to market regulation. In this episode, we delve deeper into the concept of circuits, with real life stories and understand how they help the market.  We also discuss, should circuits continue to exist in their current form? or is it time to explore alternatives that foster greater transparency and resilience?   Show Notes & References  00:00 Introduction and Disclaimer 01:24 Background on limits or circuit breakers. 06:38 When did India implement the circuit breaker? 09:20 What are the current rules for circuits in India? 15:58 Why are circuits interesting in the first place? 19:07 What would happen if circuits weren’t there? 24:38 Some interesting stories on circuits in the stock market 36:34 What is a better way to manage circuits? 40:47 Will circuits continue to exit?

Lessons from 2021, the year irrationality went viral

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