Jatin Khemani, CFA

Top Indian banks face a troubling paradox — borrowing deposits at nearly 9% but lending at only 8.5%. Top banker and business leader Uday Kotak highlighted this discrepancy in a post on X, directly questioning the sustainability of the banking model amid these inverted margins. Kotak outlined the critical challenge banks currently face: "Leading banks are taking 1 year wholesale deposits at ~8%. Translates to loaded marginal deposit cost of 9%+ after CRR (0 interest), SLR, deposit insurance, priority sector. Excluding opex."

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India’s investment landscape has just evolved. SEBI has launched a new investment category: Specialised Investment Funds (SIFs), and they could change how High-Net-Worth Individuals (HNIs) invest. ➡️ What are SIFs? - SIFs are professionally managed, pooled investment vehicles. - They offer flexibility and sophistication like PMS or AIFs, but under SEBI’s mutual fund framework. ➡️ Why were SIFs introduced? Well, tbh, until now, Indian investors had a gap: - Mutual Funds were easy to access, but restricted in strategy. - AIFs (Alternative Investment Funds) offered advanced strategies, but required ₹1 crore+ minimum. - SIFs bridge that gap, with a minimum investment of just ₹10 lakh. ➡️ What can SIFs do that Mutual Funds can't? - Run long-short equity or sector-rotation strategies. - Use derivatives (up to 25% of net assets) for hedging or alpha. - Invest in REITs, InvITs, debt, or thematic opportunities. - Design customised portfolios with broader asset-class exposure. - These are tools not available in regular mutual funds. ➡️ Why should you choose SIFs? - More Flexibility: Complex strategies for growth and downside protection. - Broader Diversification: Access equity, debt, REITs, and more in one vehicle. - Lower Entry Barrier than AIFs: Minimum investment is ₹10 lakh (vs ₹1 crore for AIFs). - Professional Oversight: Managed by top-tier CIOs and fund managers with proven track records. - Liquidity Options: Open-ended, close-ended, or interval-based redemptions. - Transparent Pricing: Daily/periodic NAVs, standard disclosures, and regulated expense ratios. ➡️ Who should consider SIFs? - HNIs and emerging affluent investors are looking for more than mutual funds. Investors seeking regulated exposure to hedge-fund-like strategies. - Those who want customised sector plays or alpha-focused strategies without committing ₹1 crore to an AIF. - The only catch is that fees may be slightly higher than standard mutual funds (due to complexity). SIFs are still under SEBI-regulated caps and far more transparent than PMS or AIF models. ➡️ Who has launched SIFs as of now? - Edelweiss Asset Management Limited has received SEBI approval and launched 'Altiva SIF' under its new platform dedicated to SIF offerings. - Other major players, such as Quant, Axis, and Nippon, have announced plans to enter the SIF space. ➡️ Closing thoughts - SIFs are for the smart investor who wants the best of both worlds. The regulatory clarity of mutual funds and the strategy depth of AIFs. - If you’ve outgrown basic mutual funds but aren’t ready for a ₹1 crore AIF. SIFs may be your next big move. Follow Dwipa Shah for more insight like this. At AND Fintech, we help investors build strong foundations and invest with clarity, not confusion, because we follow Real strategies & Ethical advice.  Send a Hi on WhatsApp +91 7700935025 or Email at Info@andfintech.in Visit our website: https://andfintech.in/  #Investing #SEBI #SIF #MutualFunds #AIF #HNIs #WealthManagement

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What makes India one of the most compelling private equity markets today? Managing Partner Shweta Jalan explains why private equity in India is at an inflection point and how on-the-ground insights and strong local partnerships can make all the difference.

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India’s discount-broking boom has hit a wall. 🔸 Angel One (𝗤𝟮 𝗙𝗬𝟮𝟲) reported revenue of ₹1,202 cr (-21% YoY) and profit of ₹212 cr (-50% YoY). New client additions fell 42% YoY, total orders –26%, and margin pressure persists. The firm is now leaning on fee-based income—margin funding and wealth products—to offset the F&O slowdown. 🔸 Zerodha (𝗙𝗬𝟮𝟱) logged its first-ever revenue decline, with topline down to ₹8,500 cr (–15% YoY) and profit sliding to ₹4,000 cr (–27% YoY) from ₹9,994 cr / ₹5,493 cr in FY24. Management warns FY26 revenue could fall another ~40% as SEBI’s tightening on derivatives hits hard. 𝗪𝗵𝗮𝘁’𝘀 𝗱𝗿𝗶𝘃𝗶𝗻𝗴 𝘁𝗵𝗲 𝗵𝗶𝘁: SEBI’s tightening of derivatives rules has cut retail speculation and premium income. Higher STT on options, fewer expiries, removal of exchange rebates, and higher BSDA limits have all impacted. With F&O volumes dropping 20–30%, brokers face a new reality—higher compliance costs, lower volumes, and pressure to reinvent. Zerodha’s active trader share has dropped from 22% → 16% in 18 months. 𝗗𝗲𝗲𝗽𝗲𝗿 𝘂𝗻𝗱𝗲𝗿𝗰𝘂𝗿𝗿𝗲𝗻𝘁𝘀: Retail activity, which peaked at ~45% of market turnover in FY24, is slipping as day-trading enthusiasm fades. The average ticket size per active client has fallen ~25%, showing weaker risk appetite. 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗽𝗶𝘃𝗼𝘁: The next phase will see brokers morph into wealth and credit platforms—monetising users through margin lending, research, advisory, and subscription tools. Expect cross-selling wars between brokers, fintechs, and banks. 𝗧𝗵𝗲 𝗿𝗲𝘀𝗲𝘁! Free trading is no longer viable. India’s brokers are morphing into wealth-tech hybrids, monetising through research, lending, and advisory—where success depends on engagement per investor, not trades per second.

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#Research | Can optimistic leadership stabilize markets? A new study co-authored by Prof. Saumya Ranjan Dash (IIM Indore), published in Finance Research Letters, finds that optimistic managerial tone in annual reports can soften the impact of macroeconomic shocks on stock liquidity, especially in firms with high information asymmetry. Using FinBERT sentiment analysis on NSE-listed firms (2014–2024), the study highlights how confident corporate communication enhances investor trust and trading resilience. Strategic disclosure isn’t just about compliance, it’s a financial stabilizer. #IIMIndore #CapitalMarkets #FinanceResearch #Research #CorporateCommunication #StockLiquidity #InvestorRelations Himanshu Rai

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Big Move in India’s Jewellery Retail Space! Warburg Pincus is set to re-enter the Kalyan Jewellers group with an ₹850 crore investment for a 10% stake in Candere, its lifestyle jewellery brand. Key Highlights: 1. Valuation Surge: Candere’s value has jumped from just ₹40 crore in 2017 to ~₹8,500 crore today. 2. Growth Strategy: Plans to add 80–90 new franchise-led stores across India, tapping into the demand for branded, affordable jewellery. Performance: Q1FY26 revenue up 67% YoY (₹66 crore), with profitability expected by FY26-end. 3. Industry Context: Jewellery retail, especially lifestyle and lab-grown diamonds, is attracting strong capital flows (Giva, Aukera, BlueStone). This move positions Candere as a key growth engine for Kalyan Jewellers, backed by one of the most reputed global PE investors. For investors, this signals growing confidence in India’s shift towards organised, branded jewellery consumption.

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Indusind … Based solely on poorly worded reporting and a ceo interview that struggled to explain what happened, my surmise is.. They had external fx trades (cross currency swaps) hedging fcy liabilities. (As an aside, borrowing in yen and hedging against rupee gives you something close to rupee cost of borrowing, not the lower rates of yen, - basic fwd fx math) When constructed and documented well (proper hedge accounting framework), these derivative hedges CAN be accrual accounted under global accounting standards, in line with the accounting for the underlying liabilities. This is the whole arcane subject of IAS39, IFRS9 etc etc and requires robust and well documented accounting and control frameworks. (Including a separation of the alm/treasury desk and trading desks and ideally, the alm desk “externalising its own trades” or, if it trades with the trading desk, asking the trading desk to ring-fence those matching external trades). In effect, the all in interest cost of rupee liability (yen swapped into inr) is accrued on a daily basis rather than marked to market (in line with the balance sheet item being hedged and mitigating volatility in income statements that would arise if the derivatives were marked to market). When that is not done, i.e, the hedge derivatives do not qualify for hedge accounting treatment, you will have a mismatch between an accrual accounted liability and a mtm derivative hedge - *this is a timing impact and not an economic impact* and should have been adjusted out from a performance perspective (various terms like asymmetry adjustment etc are used to identify and report this). When external deals are broken (exited before maturity) because the underlying liability is extinguished, there is no new p/l since these are anyway at mtm. But the offsetting mtm on the liability needs to be taken as a immediate hit (or credit) to p/l at the same time because there is no liability to accrual account anymore. Looks like that is the bit indusind failed to do - they took p/l up front on the mtm trades but continued to accrue the losses on the balance sheet item. God knows how internal, external, and reg audits failed to spot this for years. Complex but fairly well understood hedge accounting rules for banks using derivatives As and when we find out more, or if someone has more info/insights, happy to discuss/change this hypothesis

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Price drops don’t break a thesis—panic does. Conviction matters more than timing in equities. Investors were keen to buy shares of a company at Rs. 1000 but they are not interested to buy at Rs. 600 rather they look for an exit. This is how most investors behave. If you want to make big, stick to your guns provided your original thesis is intact. Suppose you have bought some shares at 1000, try to buy some more at 600 or at least hold. Equity returns come in a non-linear fashion.

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How is Bandhan Core Equity Fund positioned for 2025? 🔹 Dynamic & diversified approach 🔹 Macro-led positioning 🔹 Defensive near-term, bullish long-term Watch Manish Gunwani, Head-Equity, Bandhan AMC, shares key insights. #BandhanMF #Nifty #Midcap #Smallcap #CoreEquityFund #EquityMarkets #InvestmentStrategy #MutualFunds

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India Defence Sector: Setting Off on A Transformative Journey In April’25, Magadh Capital PMS’ FS (Future Stars) and VG (Value for Growth) portfolio approaches declined by 0.93% and gained by 1.27%, while BSE500 TRI index increased by 3.18%. Over the year ending on 30th April, 2025, FS and VG delivered robust returns of 13.49% and 10.02%, while BSE500 TRI achieved a moderate gain of 5.70%. Notably, Magadh Capital PMS has not witnessed account closures despite market volatility since 4QCY2024. India Defence Sector: Long Overdue Changes Visible Now i) Increased Financial Commitment: Indian government has approved several significant defence projects in last 3 weeks indicating an urgent need for enhancement. Given India's ~ 7,000 Km long borders with two adversarial neighbours, stronger responses to terrorism and changing geopolitical dynamics necessitate rapid, effective, and sustained upgrades to India’s defence ecosystem. ii) Greater Inclusion of Private Players: MSMEs (Micro, Small and Medium Enterprises) and start-ups have increasingly participated in developing air defence systems, drones, guns, shells, and arms over the last 5-7 years. Notably, large players too are now being welcomed. The opening of the AMCA (Advanced Medium Combat Aircraft, 5thGen fighter jet) program for bidding by Hindustan Aeronautics Limited (HAL) and private entities marks a significant step forward. This inclusion is expected to expand the addressable market significantly for domestic players. iii) Boosting Self- Reliance ("Atmanirbharta"): Effectiveness of low-cost, locally made and integrated air defence, missiles, and drone systems during recent India-Pakistan skirmish is encouraging military planners to further develop domestic defence ecosystem. Indigenisation content in upcoming defence projects should rise meaningfully. Production and Export Figures In FY25, India’s estimated defence production was Rs 1,75,000 crore (up 38% YoY) and exports of defence products stood at Rs 23,622 crore (up 12% YoY). The targets are Rs 50,000 crore for exports and Rs 3,00,000 crore for production by 2029. These targets may be conservative if the private sector becomes a significant stakeholder. Magadh Capital PMS Approach to Indian Defence Sector We remain overweight. Defence is currently considered a "hot sector", widely discussed on business news channels, and valuations in many instances are becoming stretched. It would be unwise to assume every stock will deliver healthy returns. We are highly selective in our approach. Our analysis of companies in this sector focuses on factors such as long-term relevance of weapon platforms produced, potential increases in indigenisation content, capacity expansion plans, R&D expenditure, and opportunities for import substitution. Our DCF- based valuation approach provides us with a long-term perspective on these companies. #magadhpms #nifty50 #sensex #wealthcreation #portfoliomanagement #equities #stocks #defencesector

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What do India’s stronger-than-expected 7.4 % Q4 FY25 GDP and “fairly valued” markets signal for equity investors? Vivek Rajaraman, Executive Director & Head – Client Advisory, Waterfield Advisors, explains why strong macro fundamentals and ample liquidity cap downside risk, and highlights the potential of India’s defence sector and reasonably valued private banks to deliver earnings-led growth. Swipe for key insights and read the complete interview on Moneycontrol. Link in comments.

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Market Radar | Alok Agarwal of Alchemy Capital Management assesses the performance of Nifty and Sensex and highlights the challenges and positive triggers for the market. Watch the full interview here: https://lnkd.in/dEeEd3wT Ankur Mishra Mansee Dave Alok Agarwal, CFA, CMT Times Network

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74% of mutual fund investors outside India’s top 30 cities prefer equity-focused investments. This shows a growing interest in equity-led strategies among investors in smaller cities. What’s driving this shift towards equity investments?

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🔥 December Turns Explosive: ₹30,000 Cr IPO Wave Ignites Dalal Street Dalal Street is gearing up for one of its biggest fundraising months, with over ₹30,000 crore worth of IPOs set to hit the markets this December. 🚀💸 This powerful lineup reflects surging investor confidence, deep market liquidity, and accelerating interest from both domestic and global institutions. A diverse mix of companies—from tech and fintech to manufacturing and consumer brands—are entering the public markets, signalling India’s unstoppable growth story. 📈✨ 🇮🇳 India continues to stand out as one of the world’s fastest-growing economies, making it a top destination for long-term global capital. The December IPO boom is yet another validation of India’s economic momentum and investor appetite. For investors, this creates a rare window of high opportunity, provided they stay selective and focus on strong fundamentals. 🔥 With sentiment rising and fresh capital flowing in, December is set to become one of the most dynamic IPO months—reshaping expectations for early 2026. Dalal Street is ready. The IPO wave has officially begun. 🌊📊 #IPO #StockMarketIndia #DalalStreet #IndiaGrowthStory #InvestInIndia #CapitalMarkets #December2025 #MarketUpdates #EconomicGrowth #WealthCreation #FinanceNews #GlobalInvestors #BullMarket #IndianEconomy #FundRaising #ListingGains #StartupEcosystem #InvestmentOpportunities #MarketSentiment #FinancialMarkets

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No more windfall cheques. SEBI wants distributors to earn it the hard way. On 8th August 2025, SEBI scrapped the “transaction fee” that AMCs paid distributors on investments above ₹10,000. Sounds big? In practice, it wasn’t. Distributors earned a flat ₹100–150 per subscription — whether the cheque was ₹10,000 or ₹1,00,000. Compare that with trail commissions: typically 0.5%–1% of AUM annually (₹500–1,000 every year per lakh invested). That’s where the real money sits. So yes — this transaction fee was more a rounding error than a business model. Why SEBI killed it anyway Because symbolism matters. Extra fees, no matter how small, complicate the structure and quietly drag investor returns. Scrapping them signals a clean shift: - Distributors are agents of AMCs, already compensated via commissions. - Investors deserve transparency — every rupee working for them, not funding redundant payouts. - The industry moves firmly toward a trail-only, relationship-driven model. Mutual fund distribution in India is now about playing the long game. You don’t get paid for bringing in a big cheque once. You get paid for keeping clients invested, building trust, and growing AUM year after year. SEBI just buried the last shortcut. From here on, only advice-driven businesses will thrive. #SEBI #MutualFunds #Investing #WealthManagement #Distributors

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India is moving from an investment-led growth model to a consumption-driven one and the implications for investors are big. From earnings momentum to FPI flows and sector shifts, 𝐓𝐡𝐞 𝐂𝐈𝐎’𝐬 𝐓𝐚𝐤𝐞 with Mr. Harshad Patwardhan, CFA breaks down how this pivot could unlock opportunities across categories including flexi-cap and consumption funds. #UnionMutualFund #TheCIOsTake

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