Tweet Buster: How to find the best mutual fund or PMS scheme?

In this edition of Tweet Buster, we scan through the social media platform to dig out investing gems, market outlook, and market navigation strategies.

Pain-to-gain ratio

Dalal Street veteran Shankar Sharma says investors should not focus on the returns column while judging the performance of a PMS or mutual fund scheme. He says that the pain-to-gain ratio shows how much pain a fund manager gave you while delivering his gains.

Covid impact

Independent market expert Sandip Sabharwal said the current market theory is that high fuel prices, inflation, job losses, and the health impact of Covid 2.0 will not impact consumer demand. “My view is that it will impact consumer demand significantly. We will know in the next 6 months,” he said.

Warning Sign

For those bullish on stocks of two-wheeler companies, Sabharwal has a warning.

Bhav Bhagwan Che!

Sabharwal says many high-quality stocks like Bata, Titan and trade at over 100X PE of the current year and 70X next year. “The valuations-don’t-matter story, if the company is good, is being carried too far,” he warned.

Crypto Watch

Sabharwal also said that it will be naive to assume that the collapse in cryptocurrencies will not have a domino impact on other asset classes given the huge leverage and retail presence in cryptocurrencies.

3X in 5 years

PMS fund manager Shyam Sekhar said even in quality stock, you need to look for a 3X in 5 years. “If you are doing a 2X in 7 years, you aren’t doing too great. Most people who harp too much are in the second set. Sadly, they are the noisiest creatures on Twitter/SM. Most people easily fall for high decibels.”

Gems from Ian Cassel

Microcap hunter Ian Cassel puts it aptly: “The smaller the better. The more illiquid the better. The least institutionally owned the better. The more misunderstood the better. The less talked about the better. You make money by driving through the fears of other investors.”