Picture this: You’re at your favourite bakery, and you overhear that a celebrity is about to place a massive order for your favourite pastries. You rush to buy them all up before the celeb can, hoping to sell them back at a premium. That, in essence, is front running in the financial world.

We discuss how people pull off this trick and, more importantly, how they get caught.

(Spoiler alert: it’s not as glamorous as a Hollywood heist)

Axis Mutual Fund had their share of front running drama not too long ago. Traders making big bucks, splurging on luxury pads and flashy cars—sounds like a plot from "The Wolf of Wall Street”. We’ll break down the fallout and the lessons learned.

Currently, Quant Mutual Fund is going through allegations about front running.

How do you, as an investor, make sense of these allegations and decide on your next move?

Should you hold onto your Quant Mutual Fund investments or start thinking about an exit strategy?

We talk about all this and more in our latest episode of Capitalmind Podcast.

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?