Your portfolio can beat 99% Fund Managers | Copy these 5 Strategies | Akshat Shrivastava

Summary

Highlights

• Akshat is taking a career risk by managing a $1 million public portfolio and auditing it live. 📊
• Aiming to outperform 99% of fund managers, Akshat shares insights into his investment strategy. 🚀
• Avoiding hefty commissions gives individual investors a fair edge over mutual funds. ✂️
• Timing the market using common sense, like buying during a 20% market correction, sets up for alpha gains. 🕰️
• Trend riding: identify buy zones and buy during downturns, just like Akshat did with NASDAQ. 🌊
• Diversifying into various assets like Bitcoin can add an extra layer of profitability to your portfolio. 🪙
• Having flexibility allows Akshat to pivot his investments into promising areas, outperforming static fund strategies. 🔄
• Knowing when to exit an investment is as crucial as knowing when to enter—never cling to overvalued assets. 🚪

Key Takeaways

• Embrace savings on commissions by managing your own portfolio and see a significant difference over time. 💸
• Time the market like a pro—buy low, sell high—to leverage greater returns. 📈
• Ride stock trends intelligently and avoid unnecessary investments to maximize gains. 🚀
• Flexibility in investment choices across asset classes, like Bitcoin and tech stocks, can lead to higher profits. 💼
• Knowing when to exit investments is crucial—don't cling to overvalued stocks. 🚪

Overview

Chapters

• 00:00 - 00:30: Introduction to Portfolio Challenge In this chapter, the speaker introduces their ambitious plan to build a $1 million public portfolio, which is a significant undertaking involving around 8.5 to 9 crore rupees. They plan to audit this portfolio publicly every quarter and acknowledge the risks involved, particularly how poor performance might affect their viewership.
• 00:30 - 01:30: Purpose and Benchmarking The chapter 'Purpose and Benchmarking' begins with an individual expressing a desire to set an example by outperforming mutual fund managers, despite skepticism about their investing knowledge. The speaker expresses confidence based on years of experience, and they are sharing this challenge publicly to demonstrate that retail investors can surpass professional fund managers. The speaker invites followers to track the portfolio to see the applied strategies and reasons for this investment approach. The chapter serves as an introduction to the speaker's investment challenge and offers a way for individuals to follow along.
• 01:30 - 02:30: Performance and Community This chapter discusses the role of benchmarks in evaluating the performance of various types of investment funds, such as small cap, large cap, and multi-cap funds. It highlights the necessity for fund managers to choose appropriate benchmarks, like the Small Cap Index in India for small cap funds and the Nifty50 for large cap funds. The chapter also mentions the author's preference for using NASDAQ as a benchmark for their portfolio, prompting a discussion on why NASDAQ was chosen.
• 02:30 - 05:00: Importance of Saving Commissions The chapter titled 'Importance of Saving Commissions' discusses the author's strategy for creating a tech-oriented investment portfolio, which they believe will capitalize on significant growth over the next five years. The author shares that their portfolio, valued at approximately $720,000 as of the last closing, is outperforming the NASDAQ with a 14% alpha since its inception in January. Additionally, the author mentions the foundation of a community called 'wisdom hatch NRI community.'
• 05:00 - 09:30: Market Timing Strategy The chapter titled 'Market Timing Strategy' focuses on the host's explanation of why their suggested portfolio strategy can outperform 99% of fund managers. The narrator invites interested viewers to join a community where they can follow the host's investment calls. However, the main emphasis is on educating viewers about six key points of the investment strategy that they can emulate to potentially achieve similar successful outcomes with their own portfolios.
• 09:30 - 15:00: Trend Riding and SIP Strategy The chapter 'Trend Riding and SIP Strategy' discusses the financial benefits of avoiding commission-heavy investment products. It highlights the importance for serious investors to understand the calculations that show how much money can be saved by doing so. The chapter further illustrates these points by providing calculations, demonstrated through a specific calculator, to emphasize the potential losses incurred when investing with high commissions. The narrator promises to provide a link to the mentioned calculator for further exploration.
• 15:00 - 19:00: Flexibility in Asset Allocation The chapter discusses the importance and methods of flexibility in asset allocation. It illustrates that despite the size of the investment, whether it's a lump sum of 10 lakhs, 10 crores, or 100 crores, the percentage returns remain the same. The transcript highlights that while one's portfolio might generate a return of approximately 12%, matching a fund manager's performance, a significant number (over 90%) of Indian large-cap mutual fund managers have underperformed against the market benchmark despite charging commission fees.
• 19:00 - 20:00: Timing the Exit and Reinvestment In this section, the author is discussing the impact of commissions on investment portfolios, specifically comparing scenarios of a 12% return with low commission costs versus an 11% commission scenario, demonstrating the resultant change from 3.1 crore to 2.83 crore.
• 20:00 - 25:00: Valuation Analysis The chapter 'Valuation Analysis' discusses an individual's process of evaluating the cost-effectiveness of their investment strategy. The speaker details how they save hefty commissions, around 9% of their portfolio, by managing their own investments instead of relying on fund managers. The argument made counters the notion that experts always outperform the market, providing logical points to prove that their strategy can systematically beat most fund managers. The speaker aims to equip listeners with insights to apply these strategies themselves.
• 25:00 - 27:00: Conclusion and Call to Action In the conclusion and call to action chapter, the focus is on the benefits of understanding investment strategies. The speaker begins by highlighting the savings on commissions, noting that a 1% commission is a reasonable estimate, especially in small cap funds that often charge high fees. By systematically learning how to invest money, individuals can achieve a larger alpha or higher returns. The second key point discussed is the ability to time the market. The speaker acknowledges common advice against market timing, referencing Warren Buffett, but seems to suggest there might be value in learning how to do it effectively.

Your portfolio can beat 99% Fund Managers | Copy these 5 Strategies | Akshat Shrivastava Transcription

• 00:00 - 00:30 Hi everyone. So I'm taking a big risk in my career. I'm going to build a $1 million public portfolio. This portfolio will be roughly around 8 and a half 9c cr. And almost every 3 months or every quarter I'm going to audit this portfolio in front of entire YouTube community. Now this is a big risk because if my portfolio does not perform I understand that at least 30 40 50% of my viewers will say that you know okay
• 00:30 - 01:00 you don't know any investing why don't you leave YouTube if I do perform then I will set an example and this is what I want to prove by doing this exercise that retail investors can beat mutual fund managers this is something that I have been doing for years and I'm going to make this public so this is a challenge that I'm accepting if you like this challenge do press the like button and I will take you into the det details of that portfolio as of today as to why am I doing it, what strategies am I applying and in case you want to follow along, you can follow along as well. Okay. So, first and foremost, whenever a
• 01:00 - 01:30 fund manager takes money from you, for example, when you are doing SIPs, the first thing that they would do is set a benchmark. For example, if you are investing in a small cap fund in India, then the benchmark is small cap index. Similarly, if someone is running a large cap fund, then the benchmark is Nifty50 because that's a collection of large cap companies. If someone is running a multi-cap fund, then they will have to set a relevant benchmark. So, the benchmark for my portfolio is very simple. It is NASDAQ. Why NASDAQ?
• 01:30 - 02:00 Because I'm going to make a tech oriented portfolio. That is where I feel majority of the growth in the world in the next 5 years is going to come from and I'm going to try to beat NASDAQ. Am I beating the NASDAQ right now on this portfolio? This is my portfolio by the way. It's roughly 720,000 till the last day's closing. It is already up and it is generating a 14% alpha. I started developing this portfolio in January of this year when the markets were at peak. I'd started a community called as wisdom hatch NRI community. In case you guys
• 02:00 - 02:30 are interested, I'm leaving the link in the description and comment box. But again, no money is charged for the information that I'm giving you on this YouTube. In case you are a serious investor, you want to be a part of a community, you want to see my every buying call, then you are more than welcome to join that community. But on this video, I'm going to help you understand six simple points why this portfolio will beat 99% of fund managers out there. I'm not boasting it. In fact, you can copy along these strategies and your portfolio is also going to do well. Okay, so let's start without me
• 02:30 - 03:00 overpromising anything. Number one is that this portfolio saves massive commissions. And if you are a serious investor, you must understand the math that I'm going to show you. So let me just quickly take you to this slide and show you all the calculations as to how much money you lose if you are investing in commissions oriented product. So let's do it in a lumpsum basis. So lum means that this is a calculator that I'm using. I would put the link in the description box in case you want to check how much commissions you would be paying. So let's run the math on roughly
• 03:00 - 03:30 how much? 1 cr. Okay? because we'll calculate the percentage difference. So irrespective of whether you are doing a lump sum of 10 lakhs, 10 crores, 100 crores, whatever it is, percentage wise, it will remain the same. So let's say that my portfolio is roughly generating 12% right and I am matching the performance of a fund manager. Then here is what the data tells us that this year Indian mutual funds large cap have underperformed the market. How many of them? Approximately 90% plus. So 90% of fund managers who take money for commissions, they are underperforming the benchmark. So here I'm doing the
• 03:30 - 04:00 benchmark analysis. For example, if you're doing this investing in India or the US, whichever benchmark, if I'm making 12%, paying close to 0% commissions and retaining this portfolio for 10 years, then the total amount is 3.1 CR. Okay? And if I am doing it at 11% commission, okay, why? Because roughly 1% commission will be there. There will be some transaction cost this that stuff. Then my portfolio falls to 2.83. Now, so here is the commission math how it would work out. So 3.1 crores minus 2.8 crores right so this
• 04:00 - 04:30 gives me roughly like 30 lakhs okay now 30 lakhs if you divide by 2.8 8 crores. Now in percentage terms this will come out to be roughly 9% commissions that I am paying on my portfolio. Now this entire thing I am saving. Okay. Now of course a natural argument comes that hey we are paying experts they will beat the market this that stuff. See I'm just showing you the math. I'll take you through five six critical points why this portfolio will systematically beat 99% fund managers. Please watch it fully. You yourself will understand the logic and will be able to implement some
• 04:30 - 05:00 of the strategies. Okay. So number one is that I save commissions a healthy bit of commission. Now this 1% commission that I have taken is not an exaggerated amount because some of the small cap funds do charge quite high commissions. Now depending on the benchmark I'm just assuming it to be 1% commission. So systematically if I learn how to invest my money I am at a much bigger alpha. Okay this is point one. Now second key point that I can time the market. Now many of you would say that hey you are making a mistake timing the market because Mr. Warren Buffett says that you
• 05:00 - 05:30 should never time the market. Okay. So natural question to you, what is Mr. Warren Buffett doing right now? This is his cash positions right now. Okay, so he himself is trying to time the market. You have picked some random quote or some podcaster on YouTube who never invest his own money told you that he never time the market and you started believing in that theory. Look at what people are doing. Mr. Warren Buffett himself is timing the market. Now what is the philosophy of timing the market? It simply means that when the market is low, you buy it. When the market is overvalued, you sell it. This is a simple basic common sense of investing
• 05:30 - 06:00 which I've been trying to teach people for the last 3 years. Okay. Why is it that my portfolio is generating like a 14% alpha? So let me take you to NASDAQ and explain it to you via charts and graphs. So here you will see that NASDAQ actually corrected by 21 22%. Okay here at this point now when it had corrected by more than 20% I had literally bought almost 60 70% of this portfolio in this zone. when it had corrected by more than 20%. Now why? Because these type of
• 06:00 - 06:30 corrections are very rare. Okay, I'm not saying that the markets cannot fall more from here. It might very well fall. I don't know. But if it corrects more than 20% from its peak, I will buy even more. Now you'll say, show us the proof that you have bought it. So I'll try to find from my NRI community, right? The WhatsApp message that I had sent at the time of buying and I had purchased NASDAQ or US stocks very very aggressively when the market had corrected by more than 20%. Now luckily for me there was a reversal. So therefore my portfolio is in positive
• 06:30 - 07:00 right now it is generating 14% alpha compared to NASDAQ because if I look at year till date return I started building my portfolio somewhere here. Okay. So and the market was literally at its top. So if we take a look at NASDAQ here right the NASDAQ still is around 12% loss and my portfolio is in 2 2 and 1/2% profits. So the total alpha on my portfolio is roughly around 14%. So this is point two that I can systematically buy the market when it is down. Okay, this is very very important. This is
• 07:00 - 07:30 something that I encourage people to do that whenever you find the market to be at a discount, you buy. This is called as margin of safety buying. When do you think people will buy most? Well, people will start buying more here. What do you think I will do? Maybe I'll buy, maybe I will not buy at this zone. Most likely I will not buy here. Right? What you should do in an upward momentum is SIPs. Okay, SIPs are supposed to be done aggressively in trend riding. Okay, which I'll explain it in a minute. But the second key message that I want to give is very simple that I can buy the
• 07:30 - 08:00 market when it is cheap. There is no urgency for me to invest money unnecessarily. What happens in SIP buying is that for example, let's imagine that the market was here. Okay. Now here you had given like 1 lakh rupee. You know what? Okay, fund manager go and do like SIP for me. What do you think that poor guy will do? He will invest most of the money. Maybe he'll invest like 80% of it at least. Okay. even if he's thinking that the market is high but the fund manager can't take money away from the table right that's a big problem for him that they are generally net buyers for me that is not
• 08:00 - 08:30 a constraint and therefore I will beat 99% of the fund managers not because I am some brainiac but simply because of the fact that I have massive flexibility now the opposite is also true for example when the markets are overvalued I can sell right so for example here let me show this to you and this is a message that I had posted that see guys I had purchased a lot of nifty private banks so done a bulk investing here and you can see the channels also. So this was my technical target that I would sell it somewhere here and I had sold it near to here because if you do the long-term analysis of the Indian market
• 08:30 - 09:00 right now it is at best fairly valued. Okay, so fairly valued it was undervalued but again if you go and take a look at Nifty50 now here I will just quickly show you Nifty50 that there has been a very sharp reversal on even Nifty50 that from here to here from its bottom Nifty has reversed by roughly 12%. And please go check my last five six videos. Note the date. You yourself will see that I was aggressively buying in that zone. And now here I have not sold like Nifty50 much to be honest. But
• 09:00 - 09:30 I will be exiting some positions because the US market looks better right now from a valuation perspective. But when it came to Nifty private banks, right? The Nifty private banks had run very aggressively. Some of these stocks like HDFC etc. they had given a very good rally in the last one year so to say and they have been aggressively growing. Cotch Bank has done really well. Bajach Finance has done really well. So these type of companies have done really well. Second key thing is that I can sell some of these stocks that have given a little bit of overvaluation or runup right that's always a possibility. If some
• 09:30 - 10:00 kind of technicals are getting formed then I can definitely exit the way I had exited private bank ETFs. Third key thing is that I have flexibility to invest or not invest which means that I can retain my positions in cash. But if you have made it a lifelong mission that on every fifth I am going to do an SIP then please understand guys that you can get stuck. Okay. Now how exactly will you get stuck? So let's pick Nifty50 itself. So let's say that you started doing your SIP in January of this year.
• 10:00 - 10:30 Did you make positive returns? No, you made negative returns. In fact, you lost money by investing in the markets from December January. Right? So here is where the markets were and dance about you have not made any money. A simple way to judge this is that if you're doing equal weighted SIPs, then just draw the middle. This is the trend that you are capturing right by doing a long-term SIP like this. And what is happening is that you're not buying really good mathematical data. For example, data tells us that 20% correction, right, happens very rarely in the market. Now, if you are getting a
• 10:30 - 11:00 20% correction on something like NASDAQ, then you should buy very aggressively. This is called as step up SIP bul. Yeah, you call it bulk or whatever you want to call it. These 20% corrections are very rare in the market. Now, every time you would have bulk bought 20% correction, you would have made very good returns or additional alpha on it. More importantly, if you would have avoided this runup. Okay? So, these type of runups that for example, if the market has consolidated here, this is a buying zone. This is not a buying zone, right?
• 11:00 - 11:30 This runup, this is not a buying zone. This is called as trend riding. Okay? So which brings me to the third point that if you are managing your own portfolio then you can ride the trend. This is very very important and you need to understand trend riding. So let me explain you what is the meaning of trend riding and why you should not purchase like crazy when the trend is going on. Okay. So for example, what is the buying zone? The buying zone is this. Okay. So this was the last downtrend. Okay. This is an ongoing downtrend. So this is a buy zone. Right? So this is a buy zone.
• 11:30 - 12:00 This is a buy zone. Right? So the first key step of portfolio building is that you find a great entry point. Entry point. Okay. So 2025 for example seems to be a great entry point for NASDAQ. Now this zone for example if you would have been able to purchase this entire trend the first trend that had started from 2022 all the way till 2023. Of course you could not time the bottom right. You have to understand how to buy this dip sensibly. And this is what I coach people on. It does not require like crazy amount of techniques or
• 12:00 - 12:30 something like that. It just requires simple basic common sense and little bit of portfolio tracking maybe like 10 15 minutes a day. But let me complete my thought that see the first phase was finding a great entry point. The second phase is riding the trend. For example, if you were lucky to ride this entire trend, you would have made 109.71%. Now some of my viewers would remember that I was able to time the trend on small midcaps in India. I had invested crazy amount of money in small midcaps midcap 150 index and small cap
• 12:30 - 13:00 250 ETFs and then I was able to exit it after riding the train. This is something that I missed on ITC that I booked my profits too early. Now of course you can't perfectly time it that you will be able to capture this entire 109%. Okay, that's impossible. But even if out of this you are able to capture like 80% of it, right? So 80% of 109% whatever it comes out to be 80 85% gains. Now that's good enough, right? So that's how you need to think okay you need to be a broad person while managing your portfolio you can't absolutely time the bottom and you can't absolutely time
• 13:00 - 13:30 the top but if you are sensible for example here if you consider this right so this when you should have started buying right so for example this was a 20% correction here okay and after this how much did the markets correct more by right so absolute bottom now absolute bottom happened after another 17% fall now something similar might happen here right that here I had bought a 20% major correction. Now I still have room on my portfolio and you can see that this is roughly $720,000. Now in case I get another
• 13:30 - 14:00 downtrend then maybe let's say another 17% then I have some money. Now what would be my major buying zone right? So majority of my bulk investment would have happened at this zone right and which is how much from the top now this would roughly be 35% from the top. Now that's the goal. What happens is that when people are trying to buy this curve, this entire curve, they run out of money. Right? Now, why do they run out of money? Because SIP, right? So, never you can buy like opportunistic things. And if you do not have a great
• 14:00 - 14:30 point of entry, then you will have a very hard time riding this trend because you got stuck here right at the point of entry. For example, let me give you a counter example. If someone would have bought the market here, right? This is absolute madness. Or you did SIP here. That's again absolute madness. And you lost 20% of capital. And if there is a little bit of rebound and it goes up by let's say 30% from here you are sitting on 10% profits you'll say yeah you know what god saved me right and here uh I was at 20% loss and now I'm 30% profit I'll book my profits and go away tell me
• 14:30 - 15:00 honestly whether you do that or not almost n out of 10 people would be doing this and this is the wrong way of investing okay so that's what I would say this is point three point four is that I get massive flexibility to rotate capital across different asset classes for example Example, one of my buys was Bitcoin, right? On this portfolio. So, I'll have roughly like maybe 5 to 10% Bitcoin, right? As I have it on my portfolio. Bitcoin is already running, right? I have already made decent money on Bitcoin, right? Even on this portfolio, it is up by roughly 10 12%
• 15:00 - 15:30 the last I checked. Now, why Bitcoin? Now, many of you would say that you know what Bitcoin bad this that. Why? See, it's your perspective. Whatever you want to think about, these are wealth funds. Wealth funds, right? Which are state sponsored, nation sponsored. They are buying bitcoins. So wealth funds have also started investing money in Bitcoin. Am I saying that invest 95% of your capital in Bitcoin? No, I'm not saying. I'm telling you very genuine logical things. 5 10% 15% bets could be asymmetric bets. Now what are asymmetric bets? Asymmetric bet means that for
• 15:30 - 16:00 example Bitcoin right now it is at roughly $95,000. Now can it go to $1 million? Yes, one Bitcoin can go to $1 million. Therefore because this is a 10x opportunity. Therefore, it's an asymmetric bet here. I'm not trying to buy like stocks like Asian Paints or Hul or something like this which are a consistent compounder 15 20% all that stuff. So, this is one that I have a more wider mandate to design my portfolio. This is one. Second, I added something called as NU holding. So, new
• 16:00 - 16:30 holdings. So, new people who do not know what new holding is, it's one of the fastest growing uh digital banks in Latin America. Now, Latin America like India has less digital penetration. Now India may increased after like 2017 2018 but in Latin America still the penetration rate of banking is low. Okay. And this is going to double in the next uh 5 years. It's expected that it is going to double from its current rate. Now banks like NU holdings or new holdings they are very good from that angle. They are leading players. Their
• 16:30 - 17:00 growth rate has been massive. Here I'm posting company's growth rate. So they IPOed in 2022 and 2022 was a very bad year for the stock markets. Even Amazon corrected by like you know 30 40%. Okay. So here you can see that it corrected right and now the price discovery seems to be over right. So you are still buying at somewhat like the IPO price only right now. Okay. So therefore I have the flexibility. So this is the point that I will summarize that see when I'm managing my own portfolio I can add things like BTC. I can add things like new holdings. Okay. I can add some
• 17:00 - 17:30 other stocks that I'm adding into my portfolio. This is a very wide access to pool that I have. But if you go via fund managers, they have a very narrow mandate. For example, you invest in midcap 150 or midcap stocks or midcap mutual funds. What can they invest in? Only midcaps where only India can add bitcoin if there's an opportunity. No. When bitcoin was down, I bought it at like whatever 75ish $75,000, right? 75 $80,000. The the one that I'm showing
• 17:30 - 18:00 you in on this portfolio because it was a dip, right? It was like a 25 30% correction from the top. So I started buying at that point. Okay. So having this flexibility allows me to generate additional alpha. So this is no complication that I'm trying to create for you. You just need to be little bit on top of things and that is where wisdom community comes into the equation. In case you guys are interested definitely do check out in case you are a serious investor. I would highly recommend you to test it out. It will definitely add more value to your portfolio. The next point comes the
• 18:00 - 18:30 point of exit. See all of us know when to enter stocks and sometimes we are able to ride the stocks also but we have no understanding of when to exit stocks now this is a topic in itself maybe I'll make it as the next topic right now if you call a mutual fund manager ask him that hey should I sell my stocks no like so the answer is ubiquous no that never exit the market only okay and this is pure madness it makes no sense right I mean for example it's like saying that you bought something now you yourself can see it it's overvalued and you are not selling it what sense sense does
• 18:30 - 19:00 that make it makes no sense. But since people do not understand how to check valuations of things, figure out if something is undervalued, overvalued or for example by selling HDFC Bank now can they invest or reinvest that money into something better that reinvestment opportunities are not there. Selling becomes really difficult for multiple reasons but the prime culprit that I would say there is that people do not know how to reinvest. So let me show you like one two things that will blow your mind right. So for example let's look at Google. Okay. So now Google is a very
• 19:00 - 19:30 good company right you can see that this is the short-term trend on Google right so here you can see that this was the going trend Google is available here and if I've already done a lot of analysis on this so here if we just simply check this if it goes back to its previous level there is a 30 31% gain to be made on something like Google which is a absolute stellar company can it fall by another 5 10% yes that is where portfolio diversification comes in but now what people are doing is that now now because HDFC FC bank has given a 30 40% run up. People are running after
• 19:30 - 20:00 HDFC bank. That makes no sense. You should not be chasing a running bus. It makes no sense. You have to figure out undervalued opportunities. And these type of opportunities come very rarely. 2025 is a great investing year now because the markets have gone discounted. This does not mean that every segment in the economy is worth investing or every market is worth investing. You have to figure out which markets macroeconomically make sense. This is something that I teach and in case you liked this video, do press the like button. It will indicate that you
• 20:00 - 20:30 would want me to make these type of videos. I hope you enjoyed this conversation. Hope it gave you a conviction that at least you would start learning about the stock markets. If it did, thank you so much for watching and I'll see you soon.