Tweet Buster: Mutual funds sahi nahi hai, says Basant Maheshwari; should you worry about bond yields?

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As most sectoral indices ended in the red last week, the Nifty FMCG gauge shot up 2.9 per cent with investors choosing to rely more on defensives after benchmarks fell for five straight days before roaring back on Friday. The IPO mart kept buzzing as five new issues opened for subscription during the week. Most of these issues will list this week.

In today’s edition of Tweet Buster, we bring you the best of investing gems, stock market outlook and words of wisdom from market mavens.

NFT mania
Nikhil Kamath, co-founder, Zerodha and True Beacon, took a dig at the craze behind non-fungible tokens. “Just because something is scarce or has a finite no doesn’t make it valuable. My dog will only crap a certain no of times over his lifetime. To everyone selling coins, NFTs, and all kinda exotic nonsense.”

Warning sign
Shankar Sharma of First Global said the day when the list of top gainers includes stocks like REC, HUL and ITC , consider it as a harbinger of bad news.

Easy money, really?
Maverick value investor Vijay Kedia summed up his years of experience on Dalal Street in just one line: Stock market is a place to make the easiest money the hardest way.

Forget the daily market
Radhika Gupta, MD and CEO, Edelweiss Asset Management Limited, said: “If you had to do a 5 year FD, you would check rates before investing. But after investing, would you go to the bank, and keeping check what current rates are? Then why should the daily movement in yields, RBI actions, and macros bother 5 year debt investors?

MF woes
PMS fund manager Basant Maheshwari has an honest admission to make about his experience as a mutual fund distributor several years ago. “I realised that MFs & SIPs only make the AMC & distributors rich. For investors, it just beats FD. If you want to be really rich buy stocks – buy a few & don’t make a zoo out of it. Few is good enough. I speak from experience.”

IPO warning
Ravi Dharamshi of ValueQuest Investment Advisors opined that none of the recent IPOs are worthy of being a portfolio company. “Of course, the crazy valuations that they are demanding makes it an easy avoid.”

Triggers for a bear attack
Dharamshi listed five reasons for last week’s correction on Dalal Street:

  1. Bunched up IPOs in the last fortnight of FY
  2. Global markets have been muted for the last few days
  3. For the time being, all positives have panned out
  4. The first round of inflation scare and yield jump needs to be factored
  5. Gains need to be digested

Strike when the iron is hot
He advised investors to keep the powder dry and wait for the opportunity coming up in next few months. “Some people stay invested through the correction, that is a smart call as well. Important to have the right stocks (narratives backed by numbers) with long term perspective,” Dharamshi said.

For IPO investors
iThought co-founder Shyam Sekhar was also critical about the recent IPO frenzy. “March IPOs will most probably end in mayhem.”

All eyes on yields
Independent market expert Sandip Sabharwal said that when the US 10-year yields reach 2 per cent, all brokerages will start shouting ‘sell’. “That will be the time to buy.”

The ups and downs
Microcap investor Ian Cassel has a piece of timeless wisdom: “When the market goes higher it makes you want to buy. When the market goes lower it makes you want to sell. The market never screams at you to do the right thing, only the wrong thing.”