Quant को टक्कर देगी ये Mutual Fund Company!

SipVerse

17 Jul 202406:02

Summary

TLDRThe script discusses the entry of Angel One, a mutual fund, into the mutual fund industry, highlighting its potential to compete with established players like Jio3. It delves into the strategies and investment approaches of Angel One, especially focusing on its small case strategy based on quantitative methods. The speaker expresses excitement about the potential of Angel One's mutual fund schemes, which are yet to be launched, and speculates on how they might impact the market. The script also touches on the challenges of high-frequency trading and the actual returns investors might receive after various charges and taxes.

Takeaways

😀 The speaker is excited about the entry of mutual fund houses into the mutual fund industry, specifically mentioning Angel One and Jio3.
🔍 Angel One is highlighted as a mutual fund that has already received principal approval in February 2023, but is still awaiting final approval to launch its schemes.
🏦 The speaker discusses the strategy and investment approach of Angel One, emphasizing their interest in the performance of its mutual fund schemes.
💼 The speaker mentions a small case called 'ARQ by Angel One', which is ETF-based and follows a quant strategy similar to quant mutual funds.
📈 The speaker has observed maximum returns of up to 30 percent in the small case, but notes that actual returns for investors might be lower due to various charges.
💡 The discussion touches on the high frequency of trading in quant-based investing, which is different from mutual fund investing in terms of buy-sell frequency.
💰 The speaker explains that while mutual funds do not incur STCG (short-term capital gains), individual accounts do, which can affect the actual returns.
📊 The speaker mentions that the returns of the small case were around 28-29 percent in the past, but actual returns might be closer to 20-23 percent after accounting for charges.
🤔 The speaker speculates on the potential of Angel One's mutual fund to disrupt the quant mutual fund house, based on its quant-based strategy.
🚀 The speaker is optimistic about the future of Angel One's mutual fund schemes, suggesting that they could offer good returns if they follow the same strategy as their small case.

Q & A

What is the main topic of discussion in the script?
-The main topic of discussion in the script is the entry of six mutual fund houses into the mutual fund industry, focusing on Angel One and Jio3, and their strategies and performance.
What is Angel One's status with respect to mutual fund schemes?
-Angel One received principal approval in February 2023, but is still awaiting final approval to launch their mutual fund schemes.
What is the significance of Angel One's MSC setup?
-Angel One's MSC (Mutual Fund Service Center) setup is crucial as it is a prerequisite for launching their mutual fund schemes, indicating they are preparing for the final approval and subsequent launch.
What is the relationship between Angel One and small cases?
-Angel One has several small cases, which are ETF-based, and one of them is ARK by Angel One, which follows a quantitative strategy similar to quantitative mutual funds.
What is the strategy followed by ARK by Angel One?
-ARK by Angel One follows a quantitative strategy, similar to quantitative mutual funds, focusing on high-frequency trading and data-driven investment decisions.
Why is the actual return from ARK by Angel One lower than the displayed return?
-The actual return is lower due to various charges such as brokerage fees, exchange fees, and taxes, which reduce the net return for investors.
What is the impact of high-frequency trading on the returns of small cases like ARK by Angel One?
-High-frequency trading can lead to higher charges and costs, which can significantly reduce the actual returns for investors in small cases like ARK by Angel One.
What is the potential of Angel One's mutual fund in disrupting the quantitative mutual fund house?
-If Angel One follows the same quantitative strategy as their small case and improves it with data feeding, they have the potential to disrupt the quantitative mutual fund house with better returns.
What is the expected timeline for Angel One's mutual fund schemes to hit the market?
-Angel One's mutual fund schemes are expected to hit the market soon after receiving the final approval, which they have been waiting for since February 2023.
What are the potential benefits of Angel One's mutual fund schemes for investors?
-Investors can expect potentially higher returns from Angel One's mutual fund schemes if they follow a similar strategy to their small case and manage to reduce the impact of charges and costs.
What is the current status of data availability for ARK by Angel One's small case?
-The data for ARK by Angel One's small case is not readily available on their website or app, possibly due to some regulatory or strategic reasons.

Outlines

00:00

📈 Angel One's Mutual Fund Strategies and Potential Impact

The first paragraph discusses Angel One's entry into the mutual fund industry and their strategy. Angel One is noted for having a significant presence in the market, with a focus on mutual fund schemes. They have recently received principal approval for their schemes in February 2023 and are awaiting final approval to launch. The speaker expresses excitement about Angel One's strategies, particularly in relation to their small case studies, such as ARQ by Angel One. This small case is based on a proprietary stock strategy and has shown impressive returns, although the actual returns are affected by high-frequency trading and associated charges. The speaker also mentions the challenges of balancing returns with the costs involved in such strategies, highlighting the importance of data feeding and strategy training to improve performance. The potential of Angel One's mutual fund to deliver high returns, similar to their small case studies, is emphasized.

05:00

🚀 Anticipating Angel One's Mutual Fund Launch and Market Reaction

The second paragraph anticipates the launch of Angel One's mutual funds and speculates on the potential impact on the market. The speaker suggests that Angel One's mutual funds, once launched, could disrupt the market due to their unique quantitative-based strategy. The discussion revolves around the expected performance of these funds, especially in comparison to their small case studies. The speaker encourages viewers to share their thoughts on whether Angel One's entry will be a game-changer for the mutual fund industry. The paragraph ends with an invitation for viewers to comment on their expectations and predictions regarding Angel One's mutual funds and their potential to deliver high returns in the market.

Mindmap

Keywords

💡Mutual Fund

A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities that is managed by professional money managers. In the script, mutual funds are discussed in the context of investment strategies and their potential returns, highlighting their role in financial planning.

💡Angel One

Angel One is mentioned as a financial platform that provides services related to stock trading and mutual funds. The script discusses Angel One's mutual fund schemes and their approval process, indicating its significance in the investment ecosystem.

💡Quant Strategy

Quant strategy refers to a systematic approach to investing that uses mathematical models to identify and exploit market inefficiencies. The script mentions that Angel One follows a quant-based strategy in their small case investments, suggesting a reliance on data-driven decision making.

💡Small Case

In the context of the script, a 'small case' likely refers to a smaller investment portfolio or a specific type of investment strategy focused on smaller companies or assets. The script discusses the strategy followed by Angel One for their small cases and its potential impact on returns.

💡Investment Returns

Investment returns are the profits or losses generated from an investment over a specific period. The script frequently discusses the expected returns from various investment strategies, such as those of Angel One and their small case investments.

💡STCG

STCG stands for Short-Term Capital Gains, which are taxes applied to profits made from the sale of investments held for less than a year. The script mentions STCG in the context of the tax implications of frequent trading in mutual funds and small cases.

💡Frequent Trading

Frequent trading involves buying and selling securities at a high rate, often within a short period. The script discusses the impact of frequent trading on investment returns, particularly in the context of quant strategies and small case investments.

💡Data Feeding

Data feeding in the context of the script likely refers to the process of inputting data into a system or model, such as a quant investment strategy. The script suggests that improving a quant strategy involves better data feeding, which can enhance the strategy's performance.

💡Approval Process

The approval process in the script refers to the regulatory steps required for launching new mutual fund schemes. Angel One's mutual fund schemes are discussed in the context of obtaining necessary approvals, highlighting the bureaucratic aspects of financial product launches.

💡Charges

Charges in the financial context typically refer to fees or costs associated with managing or investing in a fund. The script discusses the impact of charges on the actual returns of an investment, particularly in the case of frequent trading and small case investments.

💡Market Entry

Market entry in the script refers to the introduction of new investment products or strategies into the market. The discussion around Angel One's mutual fund schemes and their potential market entry suggests the anticipation of new opportunities for investors.

Highlights

Six mutual fund houses are entering the mutual fund industry, with names to be displayed soon.

Angel One is one of the big names, and another is Jio3, which is in the process of forming.

Jio3 has previously worked with DSP and is now entering the market with J.

The speaker is excited about Angel One's mutual fund schemes.

Angel One received principal approval in February 2023, but is still awaiting second final approval to launch schemes.

Angel One has set up its AMC and is ready to launch schemes once final approval is received.

The speaker is excited about Angel One's strategy and investment approach.

Angel One has many small cases, which are ETF-based, but one notable case is ARK by Angel One.

The strategy followed by ARK by Angel One is similar to that of a quantitative mutual fund.

The speaker has seen up to 30% maximum returns in the small case inside ARK by Angel One.

The speaker visited the small case's website but found no recent data, only data from three years ago.

The small case, ARK by Angel One, had returns of around 28-29% a year ago.

The issue with the small case was the actual return to the investor due to quantitative-based investing.

High frequency trading is involved in quantitative investing, which leads to high charges.

The actual return drops significantly due to high charges, affecting the investor's net returns.

The speaker tried to find long-term data for small cases but could not find more than 7-8 years of data.

The speaker is optimistic about Angel One's mutual fund and its potential to disrupt the quantitative mutual fund house.

Angel One's schemes are expected to be launched soon after final approval is received.

The speaker invites comments on whether Angel One will be able to disrupt Quant or not.