Investment FAQs with Parimal Ade (Investment Satsang- 11)

• Initially, PSU banks were aggressive on corporate loans.
• There will be an opportunity for corporate loans. So HDFC Bank is trying to take that as an opportunity.
• Also, the credit card ban has eaten up 2%-3% of the market share of the HDFC Bank. But very soon RBI may remove the ban on credit cards.
• If RBI removes the ban then there could be chances there could be a positive reaction for the short term.
• If the comparison of HDFC bank is done with Kotak bank then Kotak bank is having a lot of subsidiaries such as AMC, Life Insurance, General Insurance, and Kotak securities. etc. Such Subsidaires are not with HDFC bank.
• That is the reason Kotak Bank is trading at a premium value.
• Value unlocking is there for both banks. Kotak bank is having more value unlocking as compared to HDFC Bank.

• Whenever underperformance happens that there are 2 types of it
o If the fund does not beat the benchmark.
o Unable to beat category average.
• If this is happening consistently for 3-4 quarters. Then one can exit.
• The other reason could also be there when the investment is done based on goal realization. Then the investor should plan the exit 3 years before the exit.
• As the market will give the exit opportunity in that 3 years. And invest that money in debt option so that the investor need not face the market volatility effect.

• Investing in a debt fund for 10 years will no be a good option.
• For this tenure need to check with other debt options such as PPF because it could be tax-free money. The rate of interest will also be on the higher side.
• Long-term G-Sec investment can also be done if you are looking for volatility in interest rates.

• Investing in gold from a hedging point of view there will not be 5% of hedging.
• From a diversification point of view, the investment can be done.
• There will be a suggestion of exploring sovereign gold bonds (SGBs).
• The best part is there is no tax on capital gains, 2.5% returns on it every year which is taxable.
• For a longer horizon, one should first look for SGBs, ETF, and then Gold Fund.

• Muthoot Finance will always trade at fair valuation or premium valuation and will not be comparable with bajaj finance.
• From a moderate investor’s view, Muthoot finance could be the choice. For Aggressive investors, bajaj finance could be the choice.
• From a compounding point of view, Bajaj Finance is doing better as they are having a large size of customer base which is nearly Rs 4 Cr.
• Muthoot Finance is also a good company with good earnings visibility and growth perspective.

• On the day when the index changes on that day they have to sell the stock.
• They will be telling you the date when they are selling and on that same day, they will buy the new stock.

• There could be a possibility of time correction in these particular banks.
• The coming 2 quarters could be challenging for all the banks in that what could be NPA numbers, how much provisioning could be done, how much capital adequacy ratios will be maintained.
• Apart from that, these are going to be the leaders of the industry. This kind of growth is available in private sector banks because of market share grab from PSU banks.
• Market opportunity grabbing from PSU banks is good and natural growth is there. That’s why it making a good combination for market investment.

• This stock is trading at a premium valuation.
• There is a presence of Growth opportunities.
• There is a competitor in terms of Prince Pipes which is also doing well. Valuation point of view prince pipe is looking well.
• Don’t know about price correction but there could be time correction. A staggering form of Investment is a good approach.