naveegator.in

Author: Naveen

  • Five years with Aditya Birla Sun Life MNC Fund

    I started investing in Aditya Birla Sun Life MNC fund after consulting my mutual fund advisor in March 2019. The initial years of investment were quite impressive, yielding good returns and boosting my confidence in this particular fund. This positive performance prompted me to initiate another SIP via the direct route, hoping to maximize my gains.

    However, things took a turn for the worse starting in October 2021. The fund began to underperform consistently. I monitored the fund’s performance closely, hoping for a recovery, but the disappointing trend persisted. This underperformance led me to rethink my investment strategy.

    In April 2023, I decided to pause my SIP in the Aditya Birla Sun Life MNC fund. Consequently, I shifted my money to other funds that were performing reasonably well, such as the DSP Tax Saver Fund. This fund had shown consistent performance over a period, which made it a more attractive option for my investment portfolio.

    Since last one year the fund performance has improved significantly. Get this, Apr 2023 my XIRR was 0% and Apr 2024 my XIRR is 14%.

    With this improvement in performance, the fund has closed the gap against its benchmark, the Nifty MNC index, which shows that the strategies implemented might be aligning well with market trends. However, while the gap has been reduced, the fund still lags behind the Nifty MNC index.

    Investment through the years

    Returns

    Profit

    XIRR

    Related reading:

  • Five years with Axis Bluechip Fund

    My journey with Axis Bluechip Fund completed five years and it was the year where I decided to call it a pause on the investment. Its continued underperformance against its benchmark S&P BSE 100 was the primary reason to take a pause. And to some extent the Axis front running case was also responsible for my decision.

    Is this a regular or a direct plan? It’s both. I started with a regular plan with help of MFD and then from Sep-2022 I started investing in the direct plan as well. The charts below are for both of them combined. Regular plan holds 76% of my investment while the direct plan holds the remaining 24%.

    Did I beat the benchmark S&P BSE 100? No. Since last three years, my investment has underperformed the S&P BSE 100.

    Am I going to continue investing in it? No, I am pausing further investments.

    Did I make any lumpsum purchases in-between? No

    Investment through the years

    Returns

    Profit Percent

    XIRR

    Related reading:

  • Non-linearity of climate change impact

    But impacts of climate change are different — they are non-linear. In a rain event, for example, the first few inches of rain typically produce no damage because existing infrastructure (e.g., storm drains) were designed to handle that much rain.

    As rainfall continues to intensify, however, it eventually exceeds the capacity of the storm runoff infrastructure and the neighborhood floods. You go from zero damage if the water stops half an inch below the front door of your house to tens of thousands of dollars of damage if the water rises one additional inch and flows into your house.

    Thus, the correct mental model is not one of impacts slowly getting worse over decades. Rather, the correct way to understand climate change is that things are fine until they’re not, at which point they’re really terrible. And the system can go from “fine” to “terrible” in the blink of an eye.

    Why are climate impacts escalating so quickly?

  • Five years of SIP with Mirae Asset Large & Midcap Fund (erstwhile known as Mirae Asset Emerging Bluechip Fund)

    In October 2023, Mirae Asset raised the investment cap of their Emerging Bluechip Fund to ₹25,000, and subsequently, in November 2023, the fund was renamed to Mirae Asset Large & Midcap Fund. Seizing this opportunity, I increased my investment in the fund, opting for the direct plan this time around. This move meant that while my earlier investment remained in the regular plan, my new contributions from November 2023 onward are placed in the direct plan.

    The fund consistently outperforms the Nifty 50 Index. In fact, since last year, it has widened its lead over the Nifty 50 Index. Yay!

    Investment through the years

    Returns

    Profit percent

    XIRR

    Related reading:

  • Five years as shareholder Polycab

    In 2024, my investment in Polycab took me on a roller coaster ride. Early in the year, allegations of ₹200 crore tax evasion were leveled against the company. As a result, the stock plummeted from ₹5,400 to ₹3,800. I felt like my golden goose was dying. My profit dropped from 500% to 325%, which, while still impressive, felt disappointing compared to the initial gains. Unsure whether the allegations were true, I grappled with the decision: should I sell Polycab and secure a gain of over 300%? Ultimately, I chose to do… nothing. I sat there, eyes closed, waiting. Remarkably, four months later, Polycab has fully recovered its lost gains. But the mystery remains: were the allegations true or false? And what happens if they are true?

    Investment through the years

    Returns

    Fiscal yearDividend yield at cost
    2019-201.86%
    2020-210.00%
    2021-221.45%
    2022-231.27%
    2023-242.13%
    2024-250.00% *
    * Data as of 4-May-2024

    The dividend yield at cost mentioned in the Returns graph above, is yield at the date at which I received the dividends. Another way to look at dividend yield is to calculate it for the fiscal year. To calculate the dividend yield at cost in the above table I use the below formula. (Total amount of dividends received in a fiscal year ÷ Total amount invested at the end of fiscal year) × 100

    Profit Percent

    XIRR

    Related reading:

  • Seven years as shareholder of Samvardhana Motherson International Ltd [and Motherson Sumi Wiring India Ltd]

    Seven years ago when I started investing in Samvardhana Motherson International Ltd, it was called Motherson Sumi Systems Limited. Over last seven years the company split its wiring business into another entity called Motherson Sumi Wiring India Limited and renamed itself to Samvardhana Motherson International Ltd.

    When Motherson Sumi Wiring Ltd got demerged, the historical share price of Samvardhana Motherson International Ltd got adjusted to remove Motherson Sumi Wiring Ltd’s valuation (not sure if I am using the right terminology here, I am no financial expert). With that I was not able to reliably calculate the historical movement of my investment. But this time, I used the technique described here with the difference being that I used Google Sheets rather than Numbers on Mac.

    Before we go see the journey, here is gist of the key events.

    DateEvent
    Jul 2017
    from Motherson Sumi Systems Ltd    		Bonus 1:2
    Oct 2018
    from Motherson Sumi Systems Ltd    		Bonus 1:2
    Feb 2022Motherson Sumi Wiring Ltd demerges with 1:1 ratio i.e. one equity share of Motherson Sumi Wiring Ltd for every one equity share of Motherson Sumi Systems Limited
    Sep 2022
    from Motherson Sumi Wiring Ltd    		Bonus 2:5
    Sep 2022Motherson Sumi Systems Limited renames itself to Samvardhana Motherson International Ltd
    Oct 2022
    from Samvardhana Motherson International Ltd    		Bonus 1:2

    Investment through the years

    I have not invested any amount since I last wrote, so the my investment through the years looks the same as last years.

    Returns

    Returns and Profit Percent chart were created using Google Sheets so it would look different from my other articles. Also, you would notice that the comparison with Nifty 50 Index is also missing; I am yet to figure that out. One thing to note here is that, last year has been good for both Samvardhana Motherson International and Motherson Sumi Wiring India.

    Profit Percent

    Looking at profit percent, it becomes even clearer how good last year has been. Till last year I was at loss of 2.5% while this time around I am at profit of 62%!

    XIRR

    I cannot create XIRR chart in Google Sheet. So you will have to read the words here.

    My XIRR now is at 9.5%. If I compare it to XIRR of Nifty 50 Index it would have been 15%. Although I am still behind Nifty 50 Index returns, but I think there may be a point in time in the future where my investment will beat the Nifty 50 Index. This was unimaginable for me till last year.

    Related reading:

  • Six years as shareholder of Supreme Industries

    As the last fiscal year (2023-24) unfolded, Supreme Industries witnessed remarkable growth in its share price. Getting included in MSCI index also helped the growth. As a result at one point, my XIRR soared to an impressive 45%!

    There was a minor correction, causing the stock price to dip below ₹4000. Undeterred by the temporary setback, I seized the opportunity to accumulate more shares, capitalizing on the lower price. Fast forward to the present—57% of my investment poured in during the last fiscal year (2023-24) alone! Interestingly, this situation mirrors the previous year where—at that time—three quarters of my investment came in last two fiscal years.

    Investment through the years

    Returns

    A dividend yield at cost of 1% is… good enough.

    Fiscal yearDividend yield at cost
    2018-190.75%
    2019-202.14%
    2020-210.42%
    2021-220.65%
    2022-231.13%
    2023-241.02% *
    * Data as of 9-Apr-2024

    The dividend yield at cost mentioned in the Returns graph above, is yield at the date at which I received the dividends. Another way to look at dividend yield is to calculate it for the fiscal year. To calculate the dividend yield at cost in the above table I use the below formula. (Total amount of dividends received in a fiscal year ÷ Total amount invested at the end of fiscal year) × 100

    Profit

    XIRR

    A remarkable 35% XIRR, compared to the Nifty 50 index’s 15%, is truly impressive! Now, the question remains: How long will it maintain this remarkable performance?

    Related reading:

  • Four years as shareholder of Tata Consultancy Services

    I cannot get around that no matter what I do, beating the market consistently is very hard, and even if I manage it, it is more due to luck than skill. I am no longer excited whenever I see a new tweet, article, or video about a new product.

    The idea of passive or index investing has killed my passion for investing.

    How index investing killed my “passion” for investing

    After two years of underperforming the Nifty 50, the above statement rings true for me. And if it happens with a company as solid as TCS, then I think I am also better off with investing in Nifty 50 index.

    Investment through the years

    Four years is a less of a timeframe for equity investments and when 65% of those investments have come in last two years, I need to be patient. Maybe in next four years things will be different.

    Returns

    TCS has been good with dividends. 2%+ dividend yield at cost is something that would consider good.

    The dividend yield at cost mentioned in the chart above, is yield at the date at which I received the dividends. Another way to look at dividend yield is to calculate it for the fiscal year.

    Fiscal yearDividend yield at cost
    2019-200.61%
    2020-210.93%
    2021-221.07%
    2022-232.91%
    2023-242.11%

    To calculate the dividend yield at cost in the above table I use the below formula.

    (Total amount of dividends received in a fiscal year ÷ Total amount invested at the end of fiscal year) × 100

    Profit

    XIRR

    14% XIRR should sound good, right? But when you see 20% XIRR on the Nifty 50 index it… pinches!

    Related reading:

  • Six years as shareholder of Hatsun

    I am not quite sure why I am writing this post on my shareholding journey of Hatsun when I have more or less given up on the company. I am planning to exit Hatsun once I see a brief uptick where it at least goes over 10% XIRR. With underperformance spanning over five years, all that is stopping me from selling off is that my 90%+ investment in Hatsun has come in the last 3 years.

    Let’s see if I am blogging about my journey next year.

    Investment through the years

    Return

    Profit

    XIRR

    Related reading:

  • Do I want more money?

    A wonderful post on why do we want more money.

    When you’re poor, your desire for more money stems from a need to survive. When you’re wealthy, your desire for more money stems from a need for status, because you are surrounded by other status seekers.

    …

    In the absence of strong convictions about what you want from life, you will always default to wanting more money.

    Why Don’t We Do What We Want?