Aashish Jhunjhunwala

Sizes that outsize! It is not uncommon to find concerns around fund sizes and hence their commensurate performance. This ostensible concern makes us look for sleeker options backed by relatively recent performances (due to their low ageing) and with the rationale that these have a long runway to cover before their chopper like structure turns into a Boeing! So till then, it's all good Going! Though what gets conveniently ignored is the velocity of market expansion that vindicates outsized funds. However, the overarching statistic that reflects the fund's ability to stomach market oscillations over decades and yet deliver outsized returns gets masked by fancier and newer names. Lest I forget the commercials. Many a times what is clinical in theory doesn't work in entirety, when it comes to hitting the ground hard and running. This is not to say that smaller sized funds haven't delivered or do not old the promise to swell into Boeings tomorrow. Hence it is prudent to have a mix of schemes based on sustainable performances. 'What has worked thus far will continue to work far!' And if it doesn't as an exception, there is always a recourse available in the form of reviews. Therefore, the challenge is in staying away from half found truths that translate into biases. A cursory glance at the table below by Value Research shows the kind of exceptional performance rendered by select schemes over time periods. Of course this is just the gist. The actual list of relatively larger schemes that boast of outsized returns runs much longer.

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There are 3 different funds & these are their 5 year CAGR. Fund 1: 25.5% Fund 2: 17.2% Fund 3: 23.01% If you had invested ₹1,00,000 in each of them 5 years back, their values today would be Fund 1: ₹3,11,825 Fund 2: ₹2,21,125 Fund 3: ₹2,81,625 So clearly Fund 1 is the winner here. But in reality for a person who is working , the investment doesn’t stop with one single tranche. Most of them would be doing regular SIP. Let’s say the person did a ₹10,000 SIP for a period of 5 years (60 months). The value of ₹6,00,000 today would be. Fund 1: ₹9,81,519 (19.8%) Fund 2: ₹11,73,819 (27.2%) Fund 3: ₹11,79,769 (27.4%) The results are surprising right? How did a fund that gave the highest returns in 5 years underperform when the investment mode changed from lumpsum to SIP? The answer lies in consistency. Fund 3 has consistently generated good returns across all timeframes like 3 months, 1 year & 3 years, leading to better value for it's customers. While on the other hand, the fund 1 had best returns in the initial couple of years and was followed by poor performance post that. This lead to SIP not doing well. This is a reason why we don’t look at CAGR numbers & instead choose annual performances. I would recommend you to see how investments at various entry points have performed. Have a look at SIP performance over short and medium term to pick a more consistent performer than the best return fund. How do you shortlist your mutual fund? If you liked the post consider sharing it with your network.

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For Angel Funds in India it is the end game for the most flexible, regulated, investment vehicle. The new regime defines process driven approach to run the Angel Fund with fair treatment to all investors of the Fund. While SEBI has provided for grandfathering of the existing Angel Fund provisions, the expectation will be to provide a robust infrastructure to have the Accredited Investor (AI) requirement fulfilled. SEBI must also address issues with AI processes for non-residents and streamline requirements in accordance with internally accepted practices. SEBI's consultation paper allows leverage of time to onboard an Investor basis Investment Manager's review of AI criteria pending certification. SEBI has also suggested including KRA agencies to allow AI certification. SEBI must consider nominating Depository Participants as additional agencies and mandate updating the Client Record (CML / CMR) to provide the AI status of the investors. This will largely be aligned with the entire dematerialisation process for AIF investors. SEBI should also review the threshold of Net Worth for Individuals for AI certification to widen the investor base in Angel Investing and other avenues. Whether past experience of investing is required along with AI to qualify as an Angel Fund's investor will probably be addressed in the fine print of the proposed regulations. #accreditation #SEBI Securities and Exchange Board of India (SEBI) #AIFs

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The rise of Continuation and Secondaries Funds in India. In the recent past a lot of PE Funds have floated their continuation funds in order to ensure that they can reap in the upside of their crown jewels of the portfolio. Multiples PE had recently launched their continuation fund to take 3 assets of their FUND II portfolio in it. These 3 assets were Vastu Housing, Quantiphi and APAC Financial Services. Similarly ChrysCapital had launched a continuation vehicle to capture the upside on their NSE Holding Similarly many PE's that are nearing their fund life and still believe that there is substantial upside in the portfolio companies are launching Continuation Funds. Continuation Funds allow the existing LP's of the portfolio to exit the previous fund. It also provides an option to become an LP in the Continuation Fund. Its a highly concentrated portfolio with no blind pool risk. Though the benefits are greater, there are some risks / intentions of GP's that are to be considered here. Some PE firms may launch a continuation fund because they are not able to exit their so called "Crown Jewels" through IPO or M&A. The valuation at which the continuation fund purchases the portfolio jewels from the previous fund also is a factor to be taken into consideration. Similarly Secondaries Funds are also gaining traction in India. Secondaries funds are launched by a different entity who would buy assets from different PE Funds and then raise funds from their LP's. Here again, the blind pool risk is taken care off. Secondaries and Continuation are providing liquidity to the existing LP's of the Funds, but question on the valuation at which they are transferred is something that one should be vigilant about. #secondariesfund; #continuationfund; #privatemarkets; #Privateequity; #Venturecapital; #Generalpartners; #Limitedpartners;

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In a recent ruling, the Mumbai ITAT in the case of Vanguard Emerging Markets Stock Index Fund A Series of VISPLC [TS-231-ITAT-2025(Mum)] has held that rights entitlement is not "shares" & is instead more akin to derivatives.   The assessee, an Irish tax resident & a SEBI registered Foreign Portfolio Investor (FPI), earned STCG income from the sale of rights entitlement & claimed exemption under Article 13(6) of the India-Ireland DTAA. The Assessing Officer (AO) disallowed the exemption & treated rights entitlement as akin to shares, bringing the gains under the purview of Article 13(5), which would make them taxable in India. Further, the AO set off the STCG from rights entitlement against the short-term capital loss (STCL) from shares, stating that before granting DTAA relief, the income must first be computed under normal provisions of the Act. The Dispute Resolution Panel (DRP) upheld the AO’s stance, arguing that rights entitlement & shares are closely related assets.    ITAT Ruling: - Rights entitlement is a distinct asset, separate from shares, & cannot be equated with shares merely because it originates from shareholding. - Under the Companies Act, rights entitlement grants an option to subscribe to additional shares, but it is an independent asset that can be renounced, transferred, or sold separately. - SEBI & NSE recognize rights entitlement as a separate security with its own ISIN, & trading in rights entitlement is subject to Securities Transaction Tax (STT) under the Finance Act, 2004, at a rate applicable to options in securities, not shares. - Gains from rights entitlement do not fall under Article 13(5) of the DTAA, which applies to shares, & instead fall under residual clause Article 13(6), making them taxable only in Ireland. - ITAT relied on the Supreme Court ruling in Navin Jindal v. ACIT, which recognized rights entitlement as a separate, transferable right distinct from shares. - ITAT also referred to its prior ruling in J.P. Morgan India Investment Co. Mauritius, holding that once the assessee claims DTAA benefits, the STCG is not taxable in India, & therefore, losses taxable in India cannot be set off against such exempt gains. - ITAT rejected the AO’s approach, ruling that STCG from rights entitlement (exempt under Article 13(6)) cannot be adjusted against short-term capital losses from shares (taxable under Article 13(5)). Since STCG was not taxable in India, the losses under domestic law could not be mandatorily adjusted against such exempt gains. Implications: This ruling reinforces that rights entitlement should be treated as a derivative-like security rather than shares for tax purposes. This principle may be evaluated in light of similarly worded article for capital gains as in India-Ireland DTAA discussed above. MLI impact to also be looked into .   #DTAA #CGT #UnboredBuffalo Transaction Square Girish Vanvari Chirag Shah Saloni Khandelwal Amol Khanna Jai Soni Fahad Dossani Govind Mandhana Ayush A Paleja

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No surprise why HDB Financial's share price dropped over 65% from unlisted highs to the IPO price band. The hype in the unlisted space doesn’t always match fundamentals. Let’s compare HDB vs Bajaj Finance (FY25): • AUM Growth (5Y CAGR): 12.3% vs 27.2% • GNPA: 2.26% vs 0.85% • ROA: 2.16% vs 3.9% • ROE: 13.6% vs 19.2% • Price/Book (Unlisted at ₹1250): 6.3× vs 5.8× for Bajaj! • P/B (IPO price @ ₹740): 3.74× Despite lower growth, weaker asset quality, and lower return ratios, HDB traded at a premium valuation in the unlisted market—driven purely by retail euphoria. Price discovery works best when driven by fundamentals—not sentiment. What does it tell you? Would love to hear your thoughts. Follow me for data-backed insights on markets, businesses, and investing at Vaibhav Agarwal, CFA Disclaimer: No recommendations. Only for education purposes #HDBFinancial #BajajFinance #IPO #Valuation #StockMarket #Investing #NBFC #AcceltInsights #WealthWithWisdom

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Can RIAs & MFDs Collaborate for Better Investor Outcomes? SEBI’s latest consultation paper (Aug 7, 2025) has strong proposals for easing the business environment for Investment Advisers (RIAs) — including the idea of “second opinions” on pre-distributed assets. But here’s the ground reality 👇 In India, most Mutual Fund Distributor (MFD) clients don’t want to pay separately for advisory. Yet, deep portfolio analysis, risk profiling, and rebalancing require professional expertise — something SEBI-registered RIAs are built for. So, what if: An MFD could engage an RIA (on a paid basis) to provide compliant, personalised advisory services… …and offer this as part of their service to investors with full disclosure that the advice comes from a SEBI-registered RIA? Investors get holistic advice without having to approach an adviser separately, while RIAs expand reach and MFDs enhance their value proposition. Where Digital Platforms Come In Seamless Compliance: Built-in segregation between distribution & advisory modules ensures SEBI’s dual-role rules are met. Automated Risk Profiling & Reporting: Data-driven insights delivered instantly, with audit trails for regulatory safety. Scalable Delivery: One RIA can serve hundreds of MFD partners without compromising service quality. Transparent Disclosure: Every advice note can carry RIA registration details and disclaimers automatically. Why This Matters Now: 📌 Bridges the gap between execution-only distribution and pure advisory 📌 Expands the RIA ecosystem without forcing every MFD to become an adviser 📌 Improves investor decision-making in a transparent, compliant way I believe SEBI could explore a clear “RIA-as-a-Service” framework for MFDs — aligned with their “second opinion” proposal but scaled for India’s current investor behaviour and powered by technology. 👉 Your views matter! If you’re an MFD, RIA, or investor, how do you see this working in practice? Would this help expand advisory reach and improve service quality? Let’s start a constructive conversation before the comment window closes. Please note : These are personal views only. Association of Registered Investment Advisers (ARIA), ArthMitra Gurukulam, Harsh Roongta (inspired by your article today), Sadique Neelgund, QPFP®, Neil Borate #MutualFunds #RIA #SEBI #WealthManagement #InvestorProtection #Fintech #InvestmentAdvisory #MFD #Regulations #FinancialPlanning #ConsultationPaper #DigitalTransformation I

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What’s the advantage of Balanced Advantage Funds? From 2020 to late 2024, Indian markets had a dream run. But as valuations rise, even seasoned fund managers are striking a cautious note. Kotak’s Sanjeev Prasad recently said: “Markets are overvalued. Ten years later, they may be higher, but returns in the near term could be more moderate.” ICICI MF’s Sankaran Naren echoed the concern, calling mid- and small-cap valuations “extremely absurd.” When fund managers themselves sound cautious, it’s worth paying attention. Interestingly, both Prasad and Naren pointed to Balanced Advantage Funds (BAFs) as a sensible option right now. So, what exactly are BAFs? ▪️ They are hybrid funds that shift between equity and debt depending on market conditions. ▪️ In bullish times, they increase equity. In rough patches, they cut equity and lean on debt to cushion returns. ▪️ To retain tax efficiency, they usually keep gross equity above 65% but use derivatives to lower net exposure when needed. For investors, this means: ✅ Smoother ride in volatile markets. ✅ Some downside protection during corrections. ✅ Exposure largely to large-cap equities (right now), where froth is lower than mid/small caps. But there are trade-offs too: ▪️ BAFs don’t run as fast in rallies, since part of the portfolio is always in debt. ▪️ Their returns usually sit in the “moderate” range - neither equity-like highs nor debt-like lows. ▪️ No model can time markets perfectly, so expectations must stay realistic. Who might BAFs suit right now? ▪️ Investors with lower risk appetite but who still want equity exposure. ▪️ Newer investors learning to handle market ups and downs. ▪️ Anyone tempted to time equity vs. debt - BAFs let the fund do that job more efficiently. Follow Chakrivardhan Kuppala for more insights. (Disclaimer: This post is for educational purposes only and not financial advice. Always do your own research before investing.) #Investing #MutualFunds #WealthManagement #FinancialPlanning #StockMarket #BalancedAdvantageFunds #HybridFunds

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India’s PMS industry pushes for access - SEBI urged to lower ₹50L investment floor. The PMS (Portfolio Management Services) industry is calling on SEBI to reduce the minimum investment threshold of ₹50 lakh, citing it as a barrier that blocks broader access to sophisticated investment strategies. Firms say that easing this limit could open the sector to a wider investor base, fueling growth and inclusivity in personalized wealth management. Why this matters for asset managers and HFT alike: Democratizes access to tailored strategies, making high conviction investing achievable for more investors. Broader investor base enables better scalability, potentially boosting liquidity and infra support for algos and quant models. Stronger growth ecosystem could anchor more robust risk and compliance infrastructure as assets surge. #PMS #AIF #WealthManagement #FinancialInclusion #CommoditizedAlpha https://lnkd.in/gej_yRNN? • Disclaimer: The content shared is for general awareness only and does not constitute an offer or solicitation to avail the services offered by PlusWealth Group or its entities.

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