Performance Update (Aug 2021)
A monthly performance update
Every month we will like to update our newsletter subscribers on the performance of our strategies.
But first, important tenants of our philosophy:
Don’t Try to Guess the Markets
Markets have been benign not just recently but for the past year. There are various reasons for this from markets being forward-oriented to plenty of liquidity sloshing around and of course, people at home discovering that the stock market might be one of the most fun games to play.
The fact is that there have been many people who have watched the market climb higher while shaking their heads in disbelief.
Trying to predict whether the market is going up or down is very hard. It’s hard to say where the market will be one day or one year from now. There might be compelling reasons for why it should go up or down but markets are mysterious and always surprises.
And as the saying goes, more money has been waiting on the sidelines waiting for a market fall than in the actual correction.
So when should one invest?
“Average returns sustained for an above-average period leads to extraordinary returns”- Morgan Housel
Anytime. There is never a bad time to invest. Yes sometimes the timing can be wrong, you might invest at the top but if you keep at it, you will eventually come out on top.
The idea of investing is to not be right or wrong, it’s about making money, meeting your financial goals, and to achieve that is invested in the market is important.
But market volatility can be upsetting.
We understand that investing close to the peak of a bull run and then seeing markets fall sharply after that can be traumatizing. So much so that people who saw the crash in 2008, can never forget it, like that’s why it's cited so much.
We get it. Seeing your portfolio fall 50% gets ingrained in our survival instinct.
However, this can be managed.
Don’t try to invest for an immediate or short-term goal: Suppose if your daughter is getting married next year. Don’t park that money in equities, that is risky.
Asset allocation: Manage volatility by investing in a less or non-correlated asset that can produce returns at low risk or diversifies your risks. For most equity investors in India, that option leads them to fixed deposits, debt funds, and gold. And those are good ideas.
Invest to achieve your objectives within your comfort levels: If your goal is to see your portfolio grow enough to beat inflation and you get worked up when markets fall, then you should look at 30% equities -80% debt funds. That portfolio suits you.
Stick to your strategy: The markets might outperform, your neighbor might buy a fancier car because the stock market went up or you might want to take more risks but you should do what suits your personality and is in your best interest.
And that’s what we try to do and help our clients with.
Now to our Performance
Except for All-Star, the other three strategies have underperformed the markets the past month. But over any other duration, has outperformed, even Whale which is majority invested in debt, has outperformed Nifty.
All-Star is our star performer.
Invest through our Site- Freefloat.in
We provide a seamless investment experience where you can invest in our strategies via a few clicks through Zerodha.
And if you don’t have an account with Zerodha, you can still get our email notifications and replicate our strategies manually wherever you have a brokerage account.
Change in our fees
We have moved to a flat fee model of Rs 5000 (inclusive of GST) that covers all our strategies for 6 months of subscription to Freefloat.in
Want to talk to us first?
You can contact us - Kishan.firstname.lastname@example.org, email@example.com
Or feel free to send me a text on WhatsApp on +91 9845020921.
and we’ll be happy to talk.