Source: Indian Hotels Annual Report 2016-17
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Wah Taj !!
Source: Indian Hotels Annual Report 2016-17
Source: Edelweiss Conference Call Transcripts Q4FY17
See, the good thing about both Asset Management and Wealth Management is that there is an organic growth because the assets also appreciate. So the average if you see, a 10% to 12% asset appreciation in both Asset Management, Wealth Management is there for everybody.
And then there are fresh assets coming in. So to give you an idea, our estimate is that the current assets under advise for the whole Wealth Management industry is close to about Rs.700,000 crores odd business, Rs. 700,000 crores to Rs. 800,000 crores, which is close to about $120 billion to $130 billion in India.
If you look at most of the other countries which have gone through this development phase, I think our long-term idea is that it ends up being
somewhere between 40% to 50% of our GDP.
So, to give you idea, you are supposed to be 50% of GDP even now, it should be $1.2 trillion, which is currently of only $120 billion.
So,we do think that as GDP grows, like to give you an idea, US assets under advice of Wealth Management industry is 85% to 90% of the GDP, we are expecting in India it should be between 40% to 50% on GDP over the next eight to ten years.
So, we do expect that not only it will grow with the GDP growth but also the percentage of GDP will grow from currently what we think is only about 5% of GDP to at least 40% of GDP over 10 to 15 years, I do not think this will happen overnight. And given that, when you do the math, I think expecting a 30% growth of this industry over the next five, seven years, we do think it is possible.
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Two Suckers
Oil prices have consistently kept moving up over the past quarter, with Brent now almost $70 per barrel.
The rise is due to coordination between Saudi, Russia and Iran, combined with strong demand linked to the recovery in global growth.
The reduced investment over the past few years may also be taking a toll, as shale oil/gas has far sharper depletion rates and thus greater capital intensity.
A rise in oil prices also sucks out liquidity from markets. The world consumes about a 100 million barrels of oil per day. Assuming 100 days of inventory in the system, a $20 rise in price needs $200 billion of additional working capital. Some of this liquidity will get diverted from financial markets.
Rising oil prices combined with a tightening Fed is not normally good for financial assets.
Both suck liquidity out of financial assets
– wrote Akash Prakash,Amansa Capital
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Linkfest: 09 January, 2018
Some stuff I am reading today morning:
NMDC OFS opens today (Mint)
Anil Ambani’s biggest test (ET)
Indian Banks-Lay of the land (Janav)
Midcap Stocks-As good as it gets (OB)
An independent Director is an oxymoron (Nirmalya Kumar)
Grantham:Asset bubble to have a meltup before it pops (Credit Writedown)
Negotiating (Craig Shapiro)
Guru’s Grim 2017 rally (Swedroe)
Dogecoin is a $2 Billion joke (Ars Technica)
10 Things investors can expect in 2018 (Common Sense)
This guest post is written by Pranshu Maheshwari of SimpleMoney, a Chennai-based fintech startup.He explains his product offering:
If you invest in direct mutual funds or are considering it, chances are, you have been overwhelmed by keeping track of all of your funds across multiple fund houses and portals.
If you have tried your hand at portfolio tracking, you probably know how exhausting and time consuming it can be. You have probably spent long hours in front of an Excel spreadsheet updating your information, or have manually uploaded your information to portals on an all too regular basis.
One option to overcome this could be logging in directly to the fund house’s website, but if you invest in different funds, this can be time consuming. With greater awareness of the benefits of investing in mutual funds directly, more of us are now investing across different platforms. Keeping track of all of this can be very difficult.
This is a shame, because mutual funds are actually great investment tools, but it’s possible that some of you might be discouraged from investing directly because of how difficult it can be to keep track of everything. The benefit of saving you 1-2% by investing in direct (rather than regular) funds would be outweighed by the hassle of all this manual tracking!
I tried to figure out if there could be an easier way of doing all this, which is when I built SimpleMoney, a tool that tracks your portfolio by reading the investment statements in your inbox, eliminating the need for data entry or uploading of information.
All you need to do is login, and your portfolio will be loaded automatically. New investments and transactions are added automatically too.
With SimpleMoney, you can see the performance of your portfolio with just a couple of clicks. SimpleMoney calculates metrics like absolute change and XIRR for all your investments. XIRR is an important value that will help you compare the performance of different information and help you evaluate your returns.
You can see this data for individual funds, by asset class, or by type of fund. You can also compare your returns against the market using our proprietary algorithm, CorrectCompare™.
SimpleMoney calculates all these metrics over various time periods, from the last one day to the last five years. I personally find this useful to figure out whether my funds are underperforming against the market, and I have been able to move out of bad investments quickly.
If you invest on behalf of your family members, you can track investments from multiple email IDs on SimpleMoney, and categorize them into subfolios by using the PAN number, folio number or name.
SimpleMoney also shows you all the capital gains taxes for your investments, allowing you to automatically calculate your advance tax liability.
SimpleMoney is free, and it takes just ten seconds of work to track your entire portfolio – we’d love for you to try it out and let us know what you think!
If you have any questions, please get in touch at support@simplemoney.in, and we’ll be happy to answer.
Happy investing!