Knowledge Faqs with Gaurav Jain (Knowledge Yagya- 15)

• As per the thought process, one needs to keep the allocation for midcap and small-cap. Need to follow the asset allocation.
• So it is required to understand the risk profile based on that need to decide which type of allocation can be done.
• If the investor is aggressive then he should not have more than 50% allocation in small and midcap. If the investor is moderate the 25% to 30% should keep allocation in small and mid-cap.If the investor is conservative then the allocation should be around 10% in small and mid-cap.

• The penetration will be there, that’s what everyone is expecting.
• It is also expected that index funds will be the future for mutual funds.
• A lot of funds are going to get launched.
• Even the fund houses are going to change the game. Their focus will be on ETFs and indexes a lot. This industry is going to change very fast.

• Both are consumption-based stocks. Dabur is more into the personal care segment while Britannia is active in the Food segment.
• Both the companies are having a very clear MOAT.
• They have excellent distribution and brand names.
• Also, Dabur and Britannia have a strong management team as well.

• There is no need to worry if you are a newcomer.
• It is recommended not to invest for the short term.
• Ups and downs are the nature of the market. If one is investing and is not knowing nature, then one should avoid it.
• No one can predict the market in short term.
• Make entry into the stock market with a long-term horizon.

• Generally, an Equity saving fund invests 40% to 45% in equity, and 30% to 35% is in arbitrage which gives returns of 4% to 5%, and around 35% in debt.
• The benefit is taxation is like equity. As it is considered an equity fund.
• Need to focus on equity and taxation, then the horizon of investment and risk profile.

• DII has shown a good way to invest.
• FIIs, as the US is a very rich country so they are having a very strong institutional investor.
• As FIIs are having a lot of money as compared to Indian market volume. They have a very high cash bag and they have a very strong market. Hence FIIs do play a big role.
• The economic difference is more between US and India. So the FII investment is very valuable to India. FII will always be an influencer (at least for some more time) but will not always lead the market.
• The Role of retails is coming very clear. In the Last 3-4 months the retail investor has done very well.
• It is also seen the in last 3-4 months the FII’s have taken the exit in July, August, and September as they were net sellers. Retail investors and DIIs have saved the market.
• The retail investors are going to have a very big role. We need to have patience. Need to follow discipline through the process.

• IndiaMart is a good company. It has placed itself very well. There is some startup that is into logistics and support.
• There is some risk associated with global players.
• It is having very high growth and has an interesting story.
• There is doubt on the nature of aggression on this stock. They can look like a conservative when compared to upcoming startups in this space. But the space is growing very fast. It is the game of index.

• There is no major difference. Both are investing in the same place.
• In ETF sometimes there is a liquidity issue that is getting reduced on the daily basis.
• The liquidity problem is not seen in the index Mutual Funds.
• While buying ETF the buying happens at market price. There is daily trading happening on it so there is a requirement for a Demat account.
• Investing in an index fund is good to invest it gives peace of mind but there is a play of expense ratio.
• ETF gives the flexibility to buy at any time and at any price and it is also a little cheaper.