Category: Marketing

Turbulent Markets, but JAINMATRIX Model Portfolios Outperform

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Dear Investor,                                                                                                                          29th June 2015

The market has been more turbulent in the last 2 months. However, JainMatrix Investments continues to do well on its research portfolio.
JainMatrix Investments is a premium Investment Service for Indian equity. It’s independent, honest and direct. And sharply focused on Investor Returns from its two Model Portfolios.
Here’s our update on the Track Record of the JainMatrix tracked portfolios and shares.
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Performance Tracker

See the compilation of performance of the Model portfolios and the entire tracked Stock Universe from JainMatrix Investments.

 * As per Value Research on 29th June 2015.

PERFORMANCE description

The Top Ten stocks from the tracked Stock Universe had annualized returns of 124.1% on 29th June 2015, compared to 132.9% on 07th April 2015. These Top Ten are from a total portfolio of 49 stocks + 1 ETF.
  • The Large Cap Retirement Model Portfolio is ahead of benchmarks, and in top 10% of MFs.
    1. The annualized return was 21.9% for the 7 stocks, bettering the indices of Sensex 17.1% and Nifty 16.5% over 30 months.
    2. The JainMatrix Retirement Large Cap Model Portfolio outperformed by 4.8%. 
    3. The best performing large cap mutual fund over a 3 year period had 23.9% annualized returns, calculated on Value Research website . We are happy to be in the top 10% of the Large Cap equity MFs by performance.
  • TheMulti-bagger Mid & Small Cap Model Portfolio continues its aggressive out-performance of the comparable Indices and equity MFs.
    1. It gave an annualized return of 78.4% for the 7 stocks, better than indices of CNX Midcap, BSE Midcap and S&P BSE Smallcap over 29 months, details in graphic.
    2. The JainMatrix Multi-bagger MSC Model Portfolio outperformed by 53.7%. 
    3. The best performing Mid & Small Cap MF over this period provided 42% annualized returns, per Value Research website.
Sign up for the JainMatrix Investment Service to take the right decisions, whatever the event, in your investing journey. ..

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  • Also we only include firms in our portfolio 90 days after publishing the report, to avoid errors from short-term price movements.
  • Note that Equity investments are inherently risky. Take help from your ‘Investment Adviser’ before allocating funds for the equity asset class. …

Investment Approach 

  • We research stocks based on their fundamentals including financials, industry prospects, management, etc.
  • We cannot assume that these stocks above will give you similar returns in future. Past performance is no guarantee of future results. Some volatile stocks have moved within months from the top to negative returns.
  • Much more important than past share price performance is the stability and quality of the businesses, their management, cash flows, etc. As these will reflect in the future share price.
  • These are captured in the JainMatrix Investments recommended portfolios such as the Large Cap Portfolio 2014, and the Mid Cap Portfolio 2014. These model portfolios align your investments and risk appetite to get appropriate gains.
  • The JainMatrix Investment Advisory Service is available for a subscription fee.
  • JainMatrix Investment is an independent research firm, with business income only from customer subscriptions, not transactions, and with no links to corporates.  This helps us stay focused on quality Research !!

JainMatrix Investment Advisory Service is available for an annual Subscription. 

Subscribe NOW to get the best Investment Service

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Thanks for the appreciation

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Dear Readers,

I’d like to thank one of my subscribers for his appreciation note.

Punit Jain

On Fri, May 22, 2015 at 6:37 PM, Mohit <mohit…..@gmail.com> wrote:

 

Investment Outlook and Large Cap Portfolio Note

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Positive Outlook and The Portfolio Outperforms by 6.2%

Report dated: 20th May 2015

JainMatrix Investments presents its Investment Outlook, and the May 2015 update of its Retirement LC Model Portfolio.

Investment Outlook Note

  • It’s now one year since the new government was elected in at the center. We are fairly pleased with this year in the economy. Without many flashy and headline oriented statements, the government is building stability and solidity in the governance. The achievements include successful auctions in Telecom and Coal mines, improvements in the Power and Coal sectors, efficiency in Parliament and improved foreign policy and exchanges. The LPG cylinder subsidy scheme is a successful pilot for other subsidy programs. Petrol and Diesel seem to be subsidy free.
  • Much more needs to be done, of course. But well begun is half done. Note that stock market investors till some years ago gained most from sectors free of government interference and control. Going forward, my confidence is growing that more sectors will be added that are free. The economy will reap benefits from improvements in ease of doing business, economies of scale and the Make in India – Export to the World initiative.
  • The INR/USD rate is now 63.73, and we now peg this to be in the range of 62-66.
  • The recent spate of volatility in the Indian stock markets is a normal short term correction after a strong rise over the last 20 months.
  • The Indian market continues to be a magnet for global investment funds, as the Indian economy has the best outlook of the BRICS countries. It is also among the few large economies growing fast.
  • Further we have seen over the last one year that the Indian investor too has come back to the markets. This is partly because other asset classes like Real Estate and Gold are not as attractive.

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In terms of outlook we expect the next few triggers to be:

  • Reductions in interest rates by RBI.
  • Improvements in the Gold asset class with the Gold monetization scheme, which may reduce imports and reduce illiquidity and improve returns from this asset.
  • Infrastructure improvements including fast tracking of projects and better PPP structures.

In terms of Risks we would identify

  1. Excessive volatility in INR-USD exchange rates or crude prices
  2. Opacity and slow resolution of foreign ownership and investment taxation issues (Vodaphone, Nokia, MAT, etc.)
  3. Poor or uneven rainfall in coming season

JainMatrix Retirement Large Cap Model Portfolio Theme

  • We renamed the portfolio as the JainMatrix Retirement Large Cap Model Portfolio.
  • The objective of the Retirement LCMP is to outperform the Sensex and Nifty by 5-10%. We have achieved this consistently over the last 29 months.
  • The seven stocks in the portfolio are from seven different sectors, but the overall focus is on Banking, Consumption, Exports and Infrastructure.

Portfolio Performance

  • The portfolio has only 7 BUY shares.
  • The RLCMP continues to perform well. On average the 7 Buy recommendation shares were up by absolute 55.5% and annualized 24.6%.
  • The Sensex and Nifty were up by 18.3% and 18.0% annualized in the same period.
  • The JainMatrix active Retirement LC Model Portfolio thus outperformed by 6.2%.
  • Investors need to continue to invest in these shares in a SIP mode for safe long term returns.

Upgrade to Premium User to receive this Model Portfolio.

Some previous notes for this Portfolio

JainMatrix investments – other useful reports

Not a subscriber? Sign up for a JainMatrix Investments subscription to help navigate your investment journey. Visit  Subscribe. 

would you like to UPGRADE TO PREMIUM user?

  • Visit the SUBSCRIBE page to find how you can get more. Click LINK
  • Also Register Now to get our Free reports and much more, on the top right of this page, or by filling this Signup Form CLICK.

DISCLOSURES AND DISCLAIMER

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an independent expert/advisor. JM has been publishing equity research reports since Nov 2012. JM is voluntarily compliant with SEBI (Research Analysts) Regulations, 2014. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com

A meeting with Saurabh Mukherjee

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Dear Investors,

I had the pleasure of meeting a high profile Indian securities professional, Saurabh Mukherjee. He is CEO of Institutional Equities at Ambit. He was in Bangalore to promote his book, Gurus of Chaos. It was interesting to hear his journey and perspectives on Indian markets, refreshingly positive and optimistic.

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Photo credits – thanks Bangalore chapter of Indian Association of Investment Professionals and CFA Society/India.

I also won a lottery at the event, and was presented an autographed copy of the book, pictured here. :-)

No matter what you do, luck can always add some icing to the cake !!

Cheers,

Punit Jain

Outlook – Budget Opportunity;Midcaps Shine

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————————————————————————————————————————— Date: 21st Feb 2015

JainMatrix Investments : a Mid & Small Cap Review of Model Portfolio

We are in a run up to the great Indian Budget 2015, and this report tries to map some of the business and economic outlook. We also present readers with the review and results of our Mid & Small Cap Model Portfolio, where we outperformed the benchmarks by an annualized 61%. We present the Feb 2015 update on this portfolio, several changes and a refresh of key data.

Our portfolio is only shared with Subscribers. 

Portfolio Objective, Theme and Performance

  • JainMatrix Investments launched its Mid and Small Cap portfolio in Feb 2013.
  • The objective of the MSCMP is to outperform the Mid and Small Cap indices by large margins.
  • It consists of 7 mid & small cap BUY rated firms that are out-performers from identified 3-5 sectors.
  • Firms are introduced into the MSCMP with a minimum holding period of 1 year.
Embed from Getty Images

Investment Strategy Note

JainMatrix Investments presents the Feb 2015 update of its Mid Cap Model Portfolio.

  • It’s been a very good year for the stock markets. Like in a marriage, the honeymoon period is now over for the new central government. It’s time for the delivery on promises. The first budget owned and created by the central govt. kicks in on 28th It will be an important event. The Budget is the Opportunity.
  • We at JainMatrix remain confident that this will be another above average year for investors. The interest rates are starting to trend downwards. Inflation is falling. The commodity prices like oil, fuels, metals, agri-commodities, etc. are trending down. The related industries may suffer a correction, but the wider economy will benefit. It will help consumers, local business and investors with costs reducing and budget surpluses. Also, foreign exchange reserves are up; gold controls are being eased and individual outbound investment limits have been raised.
  • As per the govt., local defense production will become the heart of the Make in India They have increased the foreign investment limit in the domestic defense industry from 26% to 49%. This makes sense as this is the one sector that the govt. has maximum control over, the Defense-Industrial complex. India has been foolishly importing the majority of its defense equipment, actually preferring, for some perverted reason, foreign suppliers rather than Indian. This is now being reversed. The opportunity is massive, estimated to be $250 billion over the next 10 years, or an average Rs 1,50,000 crores per year. The expectation is that Indian private sector players with manufacturing capabilities will individually, or in partnership with renowned global defense players, win defense contracts. We will expand on this theme in future notes.
  • The INR/USD rate is now 62.16, and is now expected to be in the range of 59-63.

Portfolio Theme and Performance

  • The investment theme is now – IT and Auto ancillary exports, and cyclicals like banks, financial services and infra. The investor should continue his wealth building process with Mid-Caps.
  • We have made some changes to this portfolio, and there are now 7 BUY shares and 1 HOLD.
  • Our Mid and Small Cap Portfolio continues to perform well. On average the 7 Buy recommendation shares were up by absolute 155% and annualized 92%. But including the two Holds so far, the portfolio gained by absolute 124% and annualized 73%.
  • The CNX Midcap, S&P BSE Midcap and S&P BSE Smallcap were up by 29.5%, 28.2% & 31% annualized in the period. The JM active Mid/Small Cap portfolio outperformed by 61%.

Investors need to continue to invest in these shares to continue their wealth building process.

Our portfolio is only shared with Subscribers. Sign up with us.

Some previous updates for the JainMatrix Investments Mid and Small Cap Model Portfolio

Not a subscriber? Sign up for a JainMatrix Investments subscription to help navigate your investment journey. Visit  Subscribe. 

Do you find this site useful?

  • Visit the Investment Service page to find how you can get more. And click LINK
  • Register Now to get our Free reports and much more, on the top right of this page, or by filling this Signup Form CLICK.

Disclaimer

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an independent Financial Expert/Advisor. Either JM or its affiliates or its directors or its employees or its representatives or its clients or their relatives may have position(s), make market, act as principal or engage in transactions of securities of companies referred to in this report and they may have used the research material prior to publication. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com

Happy New Year 2015 – the year of Focus and Concentration

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Dear Reader,

Here’s wishing you a very Happy New Year 2015.

The year 2014 was the year to dream BIG. That was the year when many did not believe the things that were possible in the Indian stock market. But if you thought BIG, you would have taken advantage of the emerging opportunity. You would have realized the potential in our backyard. See Greeting Card 2014.

This year, we wish you –

Seasons Greetings and a very Happy New Year 2015

Make 2015 the year of Focus and Concentration.

Let this be the year when we do not get carried away by the opportunities. But we instead ride and take advantage of these.

arjunfisheye

Just as Arjuna was not distracted, and when he looked into the water all he saw was the Fish’s eye (for more details read this). In the same way, we as investors need to focus on a few but better investment opportunities and bet big on them.

A note on Diversification Versus Concentration

How many stocks should you own in your Direct Equity portfolio?

This is a complex question, with no straightforward answer. On one hand we have Peter Lynch who owned at times thousands of shares in his Mutual Fund. His policy was to buy and hold for 10+ years as long as the story of the company develops on expected lines, as the value unravels over long periods.

On the other hand we have Warren Buffet who buys as few shares as he can, and once he has decided to buy, he buys as much as he can of the share, in fact preferring to buy out the owners and keep the management in place. With the funds he is deploying, he is actually holding very few stocks.

  1. The basic principle is simple actually. The more diversified an investor in the Indian equities, the more likely the investment returns are going to be close to the average. And lower is the Risk.
  2. Another thumb rule is that no single share, at the time of investment, should be more than 15% of your entire portfolio.
  3. However the more shares you have, the more difficult it becomes to track the events and performance.
  4. And experienced mature professional equity investors who can devote sufficient time to analysis and research, and have high confidence and conviction in their shares, have super concentrated individual portfolios of just 3-4 stocks!!

Conclusion:

My opinion is that individual investors who are not investment professionals but have significant wealth in equity should have 12-15 stocks in their portfolio. This requires some discipline, and a periodic review.

  1. JainMatrix Investments researches many stocks, and has a research universe of about 50. But the Model Portfolios are only Large Cap – 7 and Mid and Small Cap – 7, a total of 14 recommendations. These portfolios have done very well against their stated objectives, see Investment Service.
  2. As the Indian markets appreciate to new highs, like diligent gardeners, we need to prune our portfolios carefully and build the Focus and Concentration. See Portfolio Review Service for more details.

So have a great New Year 2015 – the year of Focus and Concentration.

Happy investing,

Punit Jain

JainMatrix Investments

Disclaimer

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an independent Financial Expert/Advisor. Either JM or its affiliates or its directors or its employees or its representatives or its clients or their relatives may have position(s), make market, act as principal or engage in transactions of securities of companies referred to in this report and they may have used the research material prior to publication. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com

MidCap Portfolio – Celebratory Outperformance

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Date: 25th Dec 2014

JainMatrix Investments Mid & Small Cap Model Portfolio: Monthly Update

In this, our last report of 2014, we wish our Subscribers and Readers a Merry Christmas and a Happy New Year. Its time to be grateful for the wonderful gifts of 2014.

We also present readers with the Celebratory results of our Mid & Small Cap Model Portfolio, where we outperformed the benchmarks by an annualized 54%.

We present the Dec 2014 update on this portfolio, with a refresh of key data.

 

Our portfolio is only shared with Subscribers. 

 

Portfolio Objective, Theme and Performance

  • JainMatrix Investments launched its Mid and Small Cap portfolio in Feb 2013.
  • The objective of the MSCMP is to outperform the Mid and Small Cap indices by large margins.
  • It consists of 7 mid & small cap firms that are out-performers from identified 3-5 sectors.
  • Firms are introduced into the MSCMP with a minimum holding period of 1 year.

 

Embed from Getty Images

 

  • The current investment theme is – IT services, Auto ancillaries, NBFCs, infrastructure and rural/ semi urban consumption.
  • In a mildly corrective environment of Dec 2014, the portfolio performed well. On average the active portfolio shares were up by annualized 83.9%.
  • The CNX Midcap, BSE Midcap and BSE Smallcap were up by 25.6%, 24.6% and 29.7% on an annualized basis over 23 months. These have fallen mildly in the last month.

  • The JainMatrix Investments active Mid & Small Cap Model Portfolio outperformed the indices by 54.2%.

  • The investor should continue his investing process with the MSCMP in a SIP mode.

Some previous updates for the JainMatrix Investments Mid and Small Cap Model Portfolio

Not a subscriber? Sign up for a JainMatrix Investments subscription to help navigate your investment journey. Visit  Subscribe. 

Do you find this site useful?

  • Visit the Investment Service page to find how you can get more. And click LINK
  • Register Now to get our Free reports and much more, on the top right of this page, or by filling this Signup Form CLICK.

Disclaimer

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an independent Financial Expert/Advisor. Either JM or its affiliates or its directors or its employees or its representatives or its clients or their relatives may have position(s), make market, act as principal or engage in transactions of securities of companies referred to in this report and they may have used the research material prior to publication. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com