EFFECTIVE AND SIMPLE INVESTMENT STRATEGIES
Hi, I am Kushank and I started this service based on a simple idea. The majority of mutual funds underperform the market (Nifty 50) in the long term. Consequently, people want to invest directly in stocks, but may not have the time or inclination for doing in-depth research.
If you want to invest directly in stocks and get higher returns, you should consider Simple Investing. It is a research service that recommends a portfolio of stocks - based on 2 approaches - momentum and value. Around half of the recommendations are for undervalued companies and the other half based on price momentum. This is a service for long term investing (no day trading).
The recommendations can be easily followed through the SmallCase app and require no more than 10 minutes of time commitment per week. Through this service, I hope to help you generate better than market returns - consistently, without excessive risk and after fees.
Investing is not easy, but it can be made effective by keeping things simple.
Read on to know more!
I am an engineer from IIT KGP with 10+ years of experience in finance. I did CFA to cover the basics and then got into rigorous financial analysis by working with JP Morgan and Ambit Capital in their equity research divisions. Here I developed the skills to evaluate businesses from an outsider's perspective.
Today I am part of the founding team at ParallelDots - a start-up that provides AI image recognition software to FMCG and Retail clients globally. This gave me the experience of running a business from an insider's perspective.
Over the few years, I have been investing in stocks for the long term using a mix of value and momentum-based approaches - where I generated a CAGR of 17% over v/s 6% for Nifty 50 ( from Apr - 2017 to Aug - 2020). Through Simple Investing, I decided to release these investment strategies for others through the easy to follow Smallcase platform.
A bet on Simple Investing's strategies is essentially a bet on me. You can know more about my track record here.
The Investment Approach
Yin and Yang
I run a single investment strategy that combines some stocks that are undervalued and others that have a strong price momentum. Combining the 2 approaches adds balance to the portfolio while aiming to generate excess returns over market cycles. The strategy is named Yin and Yang based on the Chinese Philiosophy which says that seemingly opposing forces of chaos (Yin or momentum) and order (Yang or value) are both complementary and integral part of everything in nature.
Key Highlights of the strategy
Concentrated portfolio of upto 15 stocks
Split equally between value and momentum picks
Select companies companies
above 1,000 crore market cap
high trading liquidity
good corporate governance practices
What is momentum investing?
Its a simple strategy of buying stocks where the price is rising. The entry points, stop losses and profit booking is determining by long term technical indicators of the stock price. The strategy performs well when the stock has clear upward or downward trends. The strategy underperforms and takes small stop losses if the stock is trading in a narrow range for a long time.
What is value investing?
its process where you buy a company when the stock is trading much below its intrinsic value. This involves careful study of the underling business, accounting quality, cash flows and assessment of intrinsic value.
Why combine value and momentum approaches?
Each approach works has its pros and cons. For example, pure value strategies end up selling long term growth stocks too soon while momentum strategies fail to take advantage of steep price corrections that markets offer. Systematically combining the two approaches adds minimizes risk and adds balance to the portfolio.
MODEL PORTFOLIO RECOMMENDATIONS WHICH CAN BE SUBSCRIBED BY CLIENTS THROUGH TWO ALTERNATIVES.
DIY Research Subscription
Through this option, you can directly subscribe to research recommendations for the model portfolio and make trades in your own broker accounts. This requires a time commitment of ~ 15 minutes per week.
Through Y2 Capital's Smallcase, the recommendations can be implemented on your borker accounts through the click of a button. Requires time commitment of ~2 minutes per week
Want to know how you can leverage my expertise to potentially earn higher than market returns? Do reach out...
Curious about markets? Then join my email newsletter below. I send emails occasionally on market observations, investment opportunities and performance updates. They are usually short 2 min reads with details going into an optional appendix.
The best way to reach me is on my email - or on Twitter (link below).