Sam | Sameer Arora @sam_arora_ - Twitter Profile

@connectgurmeet @connectgurmeet currently one thing we need to see is that our nominal GDP is growing at high single digit and earlier it was in mid teen’s so going forward we would need to reset our returns. I think gone are the days of 15% CAGR until our country nominal gdp grows double digit.

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Shankar Sharma

@1shankarsharma

2 months ago

Here's my heterodoxical solution to India's " Fragile One" crisis: 1. Impose a 1 year punitive exit CG tax on F2s: say, to 50%. ( Malaysia did this in 97-98, and was very successful) 2. Impose exit gates on F2s. Say, limit daily withdrawals. This has been done before by global fund managers in the 2008 crisis: funds froze redemptions, ie, erected " gates". There was chest beating but it helped those funds & the system survive. Else, there would have been a Domino effect of redemptions causing selling causing leverage unwinding and so on. If white institutions can do it, so can we browns too. 3. Limit or stop SIPs for 1 year. SIPs have served almost no purpose except two: A) enrich the entire food chain of wealth Management, fund management and distributors. Adjusted for risk, a LT return from Indian equities promises around 10%. Post LTCG and Volatility, it's ~7%. Not worth the jhanjhat,tbh. B) From a macro stand point, it has created a crisis - (exactly what I pointed out it would do more than one year ago as per the screenshot )- it has simply provided exit liquidity to F2s. Without SIPs, there would have been negligible F2 outflows ( as in our old days, when a selling F2 had to convince another of his buddy F2s to buy. We Indians were not going to provide exit liquidity to F2s: "nikalna hai, to dost ko lao" Respected Shrimati @iRadhikaGupta ji called my article " How India created a generation of brainwashed investors, and the macro disaster it has created" click bait. Now, bait means " bakra". Let awaam decide who's been made the real " bakra" here. SIP is " Bakra kishton mien" ( recalling that old super hit Pak serial aired in India). It's time to moderate this madness. 4. Don't AT ALL cut CG taxes now on F2s. They should not have been imposed in the first place. Terrible Idea. But reversing it now, will create a FOMO stampede "Exit before they reimpose it". 5. Stop all tourism from India to Dubai because they will return with illegal Gold.