Capitalmind Podcast Capitalmind

Recently, the mere hint of an inheritance tax proposal sparked a mini-political crisis? Thanks to a quick government rebuttal, it’s off the table—at least for now. But that’s not where the story ends.
As always, Deepak and Shray go head-to-head, weighing the merits and pitfalls of this hot-button issue. 
We’re not just looking at the problem from 30,000 feet; we’re getting into the weeds, examining real-life scenarios and potential solutions that could impact you and your future.
Government Finances: Can an inheritance tax significantly boost government coffers? Or is it just another drop in the ocean of fiscal needs?
Societal Impact: Will taxing inheritances create a more industrious society, or will it just penalise those who’ve worked hard to create wealth for their children?
Implementation: What if we set the bar high, say at 100 crores or even 1000 crores? Would this make the tax more palatable and targeted?
Practical Hurdles: Imagine inheriting a house or a business. Sounds dreamy until you hit the wall of unrealised gains and logistical nightmares. We’re peeling back the layers on these challenges.
Future Planning: If you’re expecting a windfall 5 or 10 years down the road, how should you plan your finances today? Spoiler alert: It’s not as straightforward as you might think.
So, grab your headphones and tune in. Whether you’re a financial novice or a seasoned investor, this episode promises to challenge your thinking and maybe even make you laugh along the way.
Timestamps:
00:00 Introduction and Disclaimer
01:25 Should we have an inheritance tax?
07:36 What if inheritance tax is imposed solely on the wealthy?
15:42 Creating a Trust to offset tax
25:04 Are there significant practical difficulties associated with inheritance tax?
35:08 Doesn't implementing an inheritance or wealth tax help reduce asset prices or control inflation?
42:58 How should one prepare for potential inheritance taxes in the future?

In this comprehensive discussion, Fund Manager and Head of Research Anoop Vijaykumar and Shray Chandra distil the key lessons from over five years of managing the Capitalmind Adaptive Momentum portfolio.
Get a concise overview of the principles of momentum investing driving the portfolio’s success.
Learn from our real-world lessons on why momentum investing works for long-term wealth creation
 
00:36 Introduction
01:54 Momentum strategy in the last 5 years
03:30 Difference between the fundamental and quantitive styles
08:00 Random correlations when backtesting a quantitive strategy
10:30 Capitalmind Adaptive Momentum strategy
15:05 Why does momentum investing work?
18:54 Lessons learned from 5 years of managing momentum strategy
26:00 Will momentum stop working
29:30 How can we get more out of the momentum strategy?

Have you ever wondered why finance seems to have a forgiving nature?
From the sins of the past being easily forgotten to the belief in second chances, we'll explore the nuances of forgiveness in the financial realm.
We'll dissect the tactics some "for education purposes only" players use to enrich themselves at the expense of their students. It's a sobering reminder to always question the motives behind the message.
We uncover the darker side of startup culture, where founders blur the lines between innovation and exploitation. It’s a cautionary tale for aspiring entrepreneurs and investors alike.
Deepak & Shray, in their quintessential style, discuss nuances of investing and finance in this latest episode of Capitalmind Podcast.
 
Show Notes & References
00:00 Introduction and Disclaimer
01:35 Why is finance a uniquely forgiving industry?
19:37 Deepak’s views on AT 1 Instrument
28:23 How do customers react to their fund managers' pros and cons?
57:57 Critical look at how some financial educators profit heavily from courses that may not benefit students as promised.
01:05:40 A look into the darker side of startup culture where founders misappropriate funds and then start new enterprises.
01:12:00 Delving into the challenges faced by companies when customers misuse their power.







 





 

The idea that finance companies want to do everything from payments to lending to broking to investments is strange - why not just be good at one thing?
It’s a simple explanation, it turns out. Find out more about the business of money in a language you can easily understand, through the words of Deepak Shenoy and Shray Chandra. 
Capitalmind manages Rs. 1700+ cr. as a SEBI-registered PMS, and has quantitative investing strategies that use extensively tested factor data to invest into stocks. Our flagship Adaptive Momentum strategy has outperformed the market indices over 5+ years.
References: 
00:00 Introduction
00:17 Why does every company do everything in financial services?
12:41 Why aren’t banks more aggressive in growing and pricing things lower?
26:40 Discussion on the success of Bajaj Finance and arbitrage between Banks and NBFCs
36:46 Why aren't banks aggressive on lending ? What's the issue with lending?
56:49 Deepak explains the Indian Bankruptcy code
01:07:13 What can we do to fix this?
 
More about us: https://cm.social/pms
Schedule a call with us: https://cm.social/pms-connect
 
Deepak’s Twitter: @deepakshenoy
Shray’s Twitter: @shraychandra
Capitalmind Twitter: @capitalmind_in
Deepak's first book: http://amzn.to/3CgkGea

Ever wondered why circuits are in place? 
It all started on Black Monday in 1987, where a 25% market correction prompted the introduction of market-wide circuit breakers in the US. These limits aimed to ensure market maker solvency and prevent panic-induced trading.
Fast forward to 2001, and India also introduced circuits to handle intraday market volatility. From the Nifty's inception to the imposition of index-level circuit filters, the Indian market landscape has witnessed a steady evolution in its approach to market regulation.
In this episode, we delve deeper into the concept of circuits, with real life stories and understand how they help the market. 
We also discuss, should circuits continue to exist in their current form? or is it time to explore alternatives that foster greater transparency and resilience?

 
Show Notes & References 
00:00 Introduction and Disclaimer
01:24 Background on limits or circuit breakers.
06:38 When did India implement the circuit breaker?
09:20 What are the current rules for circuits in India?
15:58 Why are circuits interesting in the first place?
19:07 What would happen if circuits weren’t there?
24:38 Some interesting stories on circuits in the stock market
36:34 What is a better way to manage circuits?
40:47 Will circuits continue to exit?

In today's episode, we delve deep into the recent actions taken by the Reserve Bank of India (RBI) towards the end of 2023 and the ensuing ripple effects they've set off.
The RBI, often the silent architect of our financial landscape, has made strategic manoeuvres that reshape the terrain for banks, non-banking financial companies (NBFCs), and borrowers.
Discover how these regulatory shifts could impact financial decisions and the broader economic landscape. From the nuances of risk weights to the implications for personal loan growth, this episode promises to demystify the complex world of financial regulations in a digestible and engaging format.
Here is a quick overview of what we talk about:
We unpack the RBI's directives regarding risk weights and the restrictions placed on simultaneous lending and investing activities by financial institutions. Dive into how startups offering digital lending products, like CRED and Paytm, are affected and the challenges they face under the new regulations. Explore why your credit card limits might be scrutinised and how conflict of interest rules reshape lending dynamics. Understand why the RBI's focus on Alternative Investment Funds (AIFs) matters and how it impacts investors' portfolios. Debate whether these measures reflect a proportionate response from the RBI and what they suggest about the current state of our economy. Timestamps 00:00 Introduction and Disclaimer
01:34 Deepak demystifies the two new regulations by RBI on Banks and NBFC
05:37 What’s the impact of these new regulations? Why should we care?
16:05 Why is RBI more concerned about personal loans?
24:54 Why aren’t you positive about the RBI action here? What’s wrong with the slowing loan growth?
32:20 If Startups are ready to take the risk, why is RBI stopping them?
45:14 Even after this bull run, why isn’t there lending against securities?
52:11 RBI has a new rule prohibiting Banks and NBFCs from evergreening loans through AIFs.
01:03:51 Is this a warning, a sign that the economy is over-heating?