Equity Advisory Services in India

Subscribed recently to Katalyst. Didnt work for me much.
They dont interact much with customers. Of 4-5 subscription tried in the last 2 years, find Arvind Kothari’s Niveshaay very usefull. Reason

  1. Reasonably good past record in terms of performance
  2. Regular updates on results and special events.
  3. Quarterly live events with customers.
  4. Respond to queries.
  5. Various options - Small case, research etc
  6. Small and mid cap mfg focussed approach

PS - feel that these services are extremely personal in nature. What appeals / works for one may not work for the other.

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Could you describe what you did not like about Katalyst other than lack of interaction.

Thanks

I usually do not go ahead buy the recommendations given by them in its entirety and use these services as a starting point to shortlist the companies in which i can invest for long term. This way i judge them basis " matching of though process" rather than the returns generated by their recommendations. Basis this Katalyst ( and previously Purnartha) did not work for ME due to

  1. Could not connect with their recommendations ( or the themes). This makes it very personal. What I like, other investors may not and what i dont like may fly with others.

  2. REPEAT POINT - No effort made to interact with the subscribers. For me a video session with live Q and A makes a substantial difference as the passion and conviction of the presenter comes to the fore. Compared to a sheet of paper. How is this different from free research reports available in moneycontrol etc?

  3. The website they have is not very user friendly.

  4. The returns in the recommendations are not very encouraging ( since i subscribed).

Hope this helps.

Have to add here that I did a lot of home work, was impressed with some aspects at that time and only then decided to go for this.

Don’t remember the reasons why though.

Which product did you subscribe to and how much does that cost compared to other services?

The basic product. Without special situations.

Price was rs10.9k

I think everyone needs to experience the advisory service to know what style suits who. After experiencing 4-5 advisors i have seen everyone has a different style and my comfort may not fit into their style.

You should consider this excercise of trying out advisory as a fee you pay to find the right fit for you.

For Eg if you have a 1 cr portfolio 1 % of fees in m.f or PMS ( taken on lower side ) would be 1 lac per annum.

So you should be okay to spend atleast 1 % of your AUM . This can add a lot of value to your portfolio in long term.

Don’t over subscribe to lot of them at one point or decision making may go for a toss as you may confused to buy what and how much.

I would prefer to have 2 advisory at Max in a year .

Do your own research and build conviction to invest. That may help to ride the journey of multibagger eventually .

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I wonder…why subscribe to these services in first place?
We can definitely do our own research…and their picks can be as randon as darts thrown by chimpanzee…I see, there is absolutely no value in this.
If you dont want to pick your own stocks , then better go with mutual funds…
But if you have decided to select your own stocks…then advice of Gautam Buddha is good…Be a light unto yourself

Some people who run advisory services could be experts in one particular style of investing, it could be identify the emerging themes, it could be identifying cycles and catching them early etc. So even if I am a stock picker, I may not have their particular investing knowledge that they have, and as such, if I also trust them depending on their investing philosophy, experience and other qualitative factors, I will invest in their recommendations and reap benefits, and their recommendations will not match with own PF, so there is no overlap.

Not that the aforementioned things are applicable to all the advisories, and not that all are beneficial for their subscribers, but some advisories sure are beneficial, both in terms of returns and knowledge.

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It is not chimpanzee throwing darts. These are people who have been in the markets for 20-25 years and have experienced multiple cycles of investing. They have their own style and it is never a bad thing to get introduced to a new style of investing. Even if you dont buy a single stock, you get research reports, guidance on member’s board, articles to read which help broaden one’s perspective and q and a sessions.

There is no harm in paying up for all these services. And after using many of these services you also know whose style will suit you. One cannot be an expert on all sectors, in that case advisory will help guide you in right direction.

P.s. - subscribed to two. Aurum capital and intelsense. Happy with both.
Earlier subscribed to two others. Will not name them. And have friends who had subscribed to others. I think these two are the best ones out there. They stick to their picks. No churning in core folio.

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I think Katalyst is a very ethical advisory . They have fantastic recommendations . They at the outset say that they are recommending a PF so some stocks may run and some may run latter . Ekansh Mittal takes a phone call when ever called and patiently explains . The returns are fantastic . I would recommend them each time some one asks me to. The other fantastic person is Mr Abhishek Bassumalik and Intelsense .

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A very valid question @Mudit.Kushalvardhan .

Small answer - They are professionals and supposed to be good at what they do.

Long answer below :slight_smile:

Have wondered the same over many years of my investing journey. But, as for most things, I wonder if there a simple one answer fits all.

I will try to answer this with myself in mind, so it may not be true for 8 out of 10 people in the room. OR maybe it is.

  1. I am hugely confused with equity MFs and have been in and out of it for the last 20 years. One major put off is inability to digest the fact that they invest in 50 - 60 companies. But the positive is that they do offer sane returns of 10 - 15 - 20% over the long term. CURRENTLY, I am using Small / Mid Cap and liquid funds as a parking space. Also, my initial income generated goes to Mutual Funds directly. Once i get a good oppurtunity, i shift from MF to direct equity completely. Two examples when i moved completely from MF to direct equity are 2014 elections and Covid lows.

  2. Regarding the chimpanzee point you are absolutely right on the role of luck / chance. You can never know. But as far as i am concerned, one needs to make an effort.

  3. Now coming to your main point WHY ? Not all equity investors have a process / system in place. They consume a lot of information and keep jumping from one tree to another in search of better fruits ( returns). These may be - moneycontrol, Valuepickr, Twitter etc or paid services like PMS, advisory, paid telegram channels. And since these are professionals who have been doing this job forever, it is expected that they will provide alpha over MFs.

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I think the reference to Chimpanzee here is to a research conducted in the US wherein the actual chimpanzee throwing a dart beat active fund managers in returns. And the shift to passive funds active funds is mainly to the inability of the passive funds to generate alpha.

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Few advantages of using an equity advisor could be:

  1. Patience and discipline: Most of us will start rethinking about our stock selection if it does not perform well in short term or mid term, but with advisory services you will mostly stick to those stocks for a longer period. Since most of those are having an experience across market cycles and are full time into the advisory business, they will have more information and experience.
  2. Knowing the trends early: There are few long term trends which they might able to spot earlier than us and you may enter into those sectors and stocks much earlier in some cases.
  3. Research reports: Though all are not good at it, but you at least have some starting point, and then you can build your own conviction after more in depth research on your own.

Some disadvantages could be:

  1. Too many recommendations at a given point of time. Some times they have to keep recommending stocks to keep new subscribers happy.
  2. If their investment style does not suit you, you may feel confused and have to change the advisory. Better to select the one after analyzing their past record and recommendations if possible.
  3. They may launch new services like short term trading, Special situations apart from their main service which can act as a distraction. You may end up experimenting with those due to temptation.

So there are some pros and cons. Every investor has to take his/her decision as to what is suitable. If you have time and comfortable with your own research then you may not need such advisory services.

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Anybody has tried stockifi service? How is it?

Agree with the above Pros and Cons of these advisories. I feel like it is a good lens to learn about markets and investing even if you do not completely follow their portfolio. It is much better to spend time reading stock specific research than just doing general reading on market which does not add much value. Importantly you can see how buy/sell actions are taken and you can learn from it. IT always helps to see how experienced hands in the market are behaving whether keeping some cash or buying more.

THese also follow company actions on a regular basis so help with some research.

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