Author: Naveen

  • Three years of SIP with Aditya Birla Sun Life MNC Fund

    Three years of SIP with Aditya Birla Sun Life MNC Fund

    Three years ago I started investing in Aditya Birla Sun Life MNC Fund with advice from my MF advisor. The fund invests mainly in the shares of multinational companies which was very different from the large cap funds. So I decided to invest more in it via direct plan while also continuing my regular plan. So my returns here are combination of regular and direct plan of Aditya Birla Sun Life MNC Fund. Below are my key takeaways.

    • I have a monthly SIP in both regular and direct plan.
    • For me, the fund has been underperforming Nifty 50 Index since Oct-2020.
    • I am planning to continue with this fund in the near future.

    Return

    Profit

    XIRR

  • Risk

    People are very good at forecasting the future, except for the surprises, which tend to be all that matter.

    The biggest risk is always what no one sees coming. If you don’t see something coming you’re not prepared for it. And when you’re not prepared for it its damage is amplified when it hits you.

    Look at the big news stories that move the needle – Covid, 9/11, Pearl Harbor, the Great Depression. Their common trait isn’t necessarily that they were big; it’s that they were surprises, on virtually no one’s radar until they arrived.

    It’s like that every year. It’ll be like that every year.

    Never Saw It Coming
  • Three years of SIP with Axis Bluechip Fund

    Three years of SIP with Axis Bluechip Fund

    Three years ago I started investing in Axis Bluechip Fund with advice from my MF advisor. As it was via a distributor it is a regular plan. Below are my key takeaways.

    • I have a monthly SIP and I haven’t missed any instalment.
    • Till Sep-2021, my returns with Axis Bluechip Fund was comparable to that of Nifty 50 Index Fund. But post that, there has been a sustained underperformance which has only increased during the recent market crash.
    • I am planning to continue with this fund in the near future.

    Returns

    Profit

    XIRR

  • Three years as shareholder of L&T Infotech

    Three years as shareholder of L&T Infotech

    When L&T Infotech came out with its IPO I wasn’t very excited, so I let it pass. And two years later when the share price doubled I ended up slapping my forehead. I swallowed my pride, acknowledged my horrendous stock picking skills and decided to invest in it. Below are my key takeaways.

    • I have invested 5 times across these three years, with last three investments coming in last six months.
    • The gap between my first and second investment was 2.5 years. Looking back, it was a lost opportunity for me that I didn’t invest more during its rise. The second time I invested in L&T Infotech, its share price had tripled. Wow!
    • The share price had been in upwards trajectory till Jan-2022. Since then the share price has been falling, impacting my XIRR. Below were the three key events since Jan-2022 that weighed down on my XIRR.
      1. Russian invasion of Ukraine
      2. Announcement of L&T Infotech merger with Mindtree
      3. Surprise rate hike of 40 basis points by RBI
    • The announcement of L&T Infotech merger with Mindtree was particularly devastating to my XIRR. That news pulled it from 45% to 17%. And it did not help that I had bought additional shares just before the announcement with price hovering around 6000. 😭
    • Here’s a little fact. Nov-2021 my XIRR is 85%. Woohoo! As of today my XIRR is 5%. Ouch!
    • Till very, very recently I was beating Nifty 50 Index by a huge margin. Not any more!
    • The company has been paying dividends regularly. No complaints over there.

    Returns

    Profit

    XIRR

  • Broken window theory

    Interesting metaphor for technical debt by Andy Hunt.

    Researchers studying urban decay wanted to find out why some neighborhoods escape the ravages of the inner city, and others right next door—with the same demographics and economic makeup—would become a hell hole where the cops were scared to go in. They wanted to figure out what made the difference.

    The researchers did a test. They took a nice car, like a Jaguar, and parked it in the South Bronx in New York. They retreated back to a duck blind, and watched to see what would happen. They left the car parked there for something like four days, and nothing happened. It wasn’t touched. So they went up and broke a little window on the side, and went back to the blind. In something like four hours, the car was turned upside down, torched, and stripped—the whole works.

    They did more studies and developed a “Broken Window Theory.” A window gets broken at an apartment building, but no one fixes it. It’s left broken. Then something else gets broken. Maybe it’s an accident, maybe not, but it isn’t fixed either. Graffiti starts to appear. More and more damage accumulates. Very quickly you get an exponential ramp. The whole building decays. Tenants move out. Crime moves in. And you’ve lost the game. It’s all over.

    We use the broken window theory as a metaphor for managing technical debt on a project.

    Don’t Live with Broken Windows
  • Three years of SIP with Mirae Asset Emerging Bluechip Fund

    Three years of SIP with Mirae Asset Emerging Bluechip Fund

    Three years ago I started investing in Mirae Asset Emerging Bluechip Fund with advice from my MF advisor. As it was via a distributor it is a regular plan. Below are my key takeaways.

    • I have a monthly SIP and I haven’t missed any instalment. In fact I wanted to increase my SIP amount but Mirae Asset has restricted further inflows in the fund.
    • My investment in Mirae Asset Emerging Bluechip Fund has outperformed Nifty 50 Index fund—that too with regular plan where I have higher expense ratio.
    • The best XIRR that I saw was in Sep-2021 where it went till 45%. Since then due to market correction it is now at 25%.
    • I am planning to continue with this fund in the near future.

    Return

    Profit

    XIRR

  • Three years as shareholder of Polycab

    Three years as shareholder of Polycab

    Three years ago Polycab came out with its IPO. I applied for it and got lucky.

    The company listed at 21% premium giving me an instant unrealised profit. The share price continued its upwards trajectory after that. The second time I got the courage to invest was after the correction due to COVID-19 market crash. After that also the share price has kept its upward momentum and I have been hesitant to invest more.

    The share price is now 4 times its listing price because of which I am now in a dilemma—what if I invest and the share price falls or what if I don’t invest and the share price still goes up. 🤔

    Below are my key takeaways.

    • In these last three years I have invested twice in the company—one of that was during the IPO.
    • In these three years, I am yet to see negative returns on Polycab. Even during the COVID-19 market crash the XIRR did not go below 10%.
    • The XIRR currently stands at 70%, yes that’s a positive 70%. Which is insane and… not sustainable. Consider this, at 70% CAGR your 10,000 will become 20 lakhs in 10 years. Nah, thats not going to happen.
    • My investment in Polycab—which is really small—has beaten Nifty 50 Index fund by a huge margin. With Polycab I have XIRR of 70%, while with Nifty 50 Index I would have 20%.
    • The company has paid out dividends thrice during three years, so no complaint there. And the dividend yield at cost for me is 1.4%, which is good.

    Returns

    Profit

    XIRR

  • Five years as shareholder of Motherson Sumi [and Wiring]

    Five years as shareholder of Motherson Sumi [and Wiring]

    With the general consensus of 10 years being long term, I am now half way through as a long term shareholder of Motherson Sumi. Below are my key takeaways.

    • I have invested 6 times across these five years.
    • It has been a roller coaster ride with this stock because when I first invested in the company, the share price was already at its peak. And then the share price started its downfall.
    • During the COVID-19 market crash my XIRR went from an already negative 15% to negative 45%. Ouch!
    • The company very recently demerged its wiring business in a separate entity as Montherson Sumi Wiring. With the demerger I got 1 share of Motherson Sumi Wiring for every share of Motherson Sumi Systems. I am including that also in my calculations. Hopefully this demerger should unlock value like it did in the case of my investment in Greenply.
    • After four years of negative XIRR, last year I finally saw it go positive. Yay! But the Russian invasion of Ukraine pulled it down. Ouch! And the listing of demerged Motherson Sumi Wiring pulled it up again. Yay!
    • My investment in Motherson Sumi has not been able to beat the index fund. Hoping to beat it in the next five years. 🤞

    Returns

    Profit

    XIRR


    Related reading

  • Four years as shareholder of Kansai Nerolac

    Four years as shareholder of Kansai Nerolac

    Happy with my investment in Asian Paints, four years ago I decided to invest in another paint company Kansai Nerolac. My returns have been, well, not good. Below are my key takeaways.

    • I have invested 6 times across these four years.
    • The company pays dividends regularly, but my dividend yield at cost has never touched 1%.
    • During the COVID-19 market crash my XIRR went from 0% to negative 15%.
    • The best XIRR came during Jan 2021 when it touched 45%. But that was an anomaly and it quickly fell to a realistic level of 25%.
    • The company has been barely able to beat Nifty 50 Index fund and since last one year Nifty 50 Index has beaten it by a huge margin. As of today while the returns in Nifty 50 Index fund would have been 25%, Kansai Nerolac’s returns has been at –5%.
    • The Russian invasion of Ukraine was more severe than COVID-19 market crash with my XIRR going from 15% to –10%.

    Return

    Profit

    XIRR


    Related reading

  • Four years as shareholder of Supreme Industries

    Four years as shareholder of Supreme Industries

    I have been investing in Supreme Industries for four years. And after four years I can say that I happy with my investment. Here are my key takeaways.

    • I have invested 8 times across these four years.
    • The company has been regularly paying dividends and the best dividend yield at cost was 1.4% that I have received in Jun 2021.
    • During the COVID-19 market crash my XIRR went from positive 15% to negative 15%.
    • The best XIRR came in Oct 2021 at 35%.
    • Over the last two years the company has been able to beat Nifty 50 Index.
    • The Russian invasion of Ukraine dented my returns but I used it to accumulate more shares—something that I did not do during the COVID-19 market crash.

    Return

    Profit

    XIRR


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