Tweet Buster: Are passive funds your best bet? Also, Kalpen Parekh’s asset allocation rule

NEW DELHI: As foreign investors have withdrawn over Rs 7,600 crore from the market in this month so far, headline equity index Nifty ended the week down by 1.89 per cent. Pharma, metals and media were the only three Nifty sectoral indices that ended in the green zone during the week.

In this edition of Tweet Buster, we sift through the social media platform to find asset allocation strategies, common mistakes to avoid in equity market, mutual fund gyaan and other investing gems from market mavens.

Decoding passive funds

Amid the growing clamour in favour of index funds, Radhika Gupta, Edelweiss Asset Management, ran a thread on how to evaluate passive funds.

In another tweet, Gupta, while replying to a question by market veteran Deepak Shenoy, listed out five pointers on which she selects equity mutual funds to buy.

Asset allocation strategy
For those confused about asset allocation strategies in a directionless market, Kalpen Parekh of DSP Mutual Fund has a piece of advise: Think about what will you regret more – not trimming exposure before a market crash or reducing risk in your portfolio before a market rally.

Value investor and smallcap hunter Arun Mukherjee listed out a few learnings from personal mistakes in equity investing.

In this tweet, Mukherjee gave out a list of 12 smallcaps which are either undergoing massive capex or recently got done with it.

Slo-mo
iThought founder Shyam Sekhar said while 2020’s heroes are falling in slow motion from the peak, the villains of 2020 are rising in slow motion on helium balloons. “This is a market being reset in slow motion. Everybody’s patience will get tested. No vaccine can cure this slow death and slow resurrection. Game on”

Investing Gems
Here’s a collection of investing gems from microcap hunter Ian Cassel and behavioural finance expert Morgan Housel.

Cassel says a big part of successful investing is not letting the direction of your portfolio dictate your mood, attitude, effort, how you treat people, etc.

In another tweet, he reminds investors a bunch of companies that will 10x over the next 5 years are waiting to be found.