ICICI Target Return Fund - Invest

Srikanth Shankar Matrubai


A rare NFO, which is good

ICICI has come with a New Fund Offer named ICICI Prudential Target Returns Fund, an Open Ended Diversified Fund. The objective of the Fund is to Generate Capital Appreciation by investing in equity/equity related instruments of BSE100 and, providing investors with options to withdraw their investment automatically based On Triggers as when and when achieved.

The fund offers investors an option to switch out their capital appreciation or entire investment when the fund reaches a particular target, preset at either at 12%, 20%, 50% or 100%. This will help the investor to book his profit and protect any downward fall.

A back testing carried by the AMC shows that a trigger @ 20% moved into even a normal savings account would have given a return of 14.92 on a Rs.10 NAV., whereas not using the trigger would have left your NAV at 10.04 inspite of the NAV having touched a high of 21.
(This Simulation is based on a Value of Rs.10 invested on 01 Jan 2006 till March 2009).

Comments:
This scheme will give comfort to first-time investors, who usually come when markets are at peak and then lose out money when they fall. This scheme will book profits regularly in a discipline manner. Profit booking in a disciplined manner is essential. Investors tend to become greedy when they see appreciation and become fearful during correction and this fund will eliminate such greed. The Trend seen in the last two years clearly shows that a bit of Active approach is essential even in Mutual Fund investments and this Fund addresses this need.

Positives :
1) The Trigger Mechanism will automatically ensure Rebalancing.
2) With Triggers, Returns are locked at regular returns and Value is preserved in the event of a Subsequent fall.
3) The fund intends to invest in Large Caps, which is a comforting factor.
4) The Fund is being launched after the Stock Market have seen a Big Correction and is Attractively Valued, thus the probability of the Fund achieving its 'Targets' is rather high.


Negative:
1) The biggest negative of the Fund is that due the Mandate, the Fund Manager is forced to Sell out Stocks as soon the Stated Target is achieved and may well miss Higher Returns if held.
2) There is no Guarantee that the Fund will meet its 'Trigger Target' if the Markets were to stay Range Bound to Negative.
3) In the Event of a Bull Run similar to 2 years back, than there is a risk of losing the Benefits of compounding Returns.


Recommendation:
The Fund should do well and one can invest going by the Fact that the Fund will be investing in Large Caps and the Markets too look attractive over the Next two years at least. The Fund may not give Huge Gains but does promise to protect your gains in the event of a market crash.

Invest with the Option of 20% Trigger Target and Switch to ICICI Liquid Plan - dividend Reinvestment Option.

One can consider investing in this Fund

Best of luck,
Srikanth Shankar Matrubai






Visit http://goodfundsadvisor.blogspot.com for Mutual funds
visit http://equityadvise.blogspot.com for Stocks and Shares

MY VIEW ON LIC'S JEEVAN ANAND

JEEVAN ANAND
At first glance, Jeevan Anand looks attractive. All insurance policies look great while buying and look quite meagre when you receive it.

Sample this -

A 30Y old male person `ll put in 27550 Rs. prem. per annum for a 20Y policy. Now look at the bonus announcements of past years for this policy.

2004-2005 - 43 Rs. per 1000 Rs. Sum assured
2005-2006 - 40 Rs.
2006-2007 - 41 Rs.

From the above bonus rate, u can expact an average bonus rate of around 41 Rs. for all the 20 years (not guaranteed).

So after completing 20 years -

A. Total prem. paid over 20 years = 27550*20 = 551000 Rs.
B. Total accrued simple reversionary bonus = 20*500*41 = 410000 Rs.
C. Loyalty addition = 100000 Rs. (not gtd.)
D. Total Maturity amount after 20 years = 1010000 Rs.

E. Now ur family `ll get 5L Rs. more after ur death from the maturity date of policy, it may happen any time in next 10-20-30 years. = 500000 Rs.

Plz. do note in case ur death occurs, during the normal prem. paying term, the benefit of receiving Sa again after maturity of the policy `ll not be there.

On a simple note, u r not even getting double of ur money after paying for 20 years & the remaining cover of 5L in case of death after maturity, may seems high at present but think for next 45-50-60 years & think about the effect of inflation on this 5L amount.
don`t invest in Jeevan Anand Policy, instead ask ur agent for following 3 policies.

1. 1 Anmol Jeevan - 1 Policy of 10L Sum assured for 25 years
2. 1 anmol jeevan - 1 policy of 15L Sum Assured for 20 years
3. 1 Amulya jeevan - 1 policy of 25L Sum assured for 15 years.

Plz. do note all the above mentioned policies r term plans of LIC & u `ll not get any money back from ur prem. pmt. for these policies but on the other hand, ur total prem. paid for these policies `ll not be more than 25-30K (depending upon ur age) whereas ur Jeevan Anand Policy prem. `ll be around 2.25 to 2.75L per annum (again depending upon ur age). U can invest the saved prem. as per ur choice & by the end of 20 years or 25 years (ur term selected in Jeevan Anand policy) u `ll have more money than Jeevan Anand policy.

Insurance is not Investment. Go for PURE TERM COVER. The difference in premium if invested in mutual funds will give you far higher returns. Remember your insurance agent gets 35 to 40% commission on your first premium .

Insurance is an EXPENSE, not an INVESTMENT. No amount of money put in INSURANCE will make you richer or recover the loss suffered by your dependants in your absence. As policy holder if you receive any money from Insurance - you are a loser because you have taken a policy which is costlier than a basic term cover. As nominee if you receive money - you are the biggest loser . What you receive from insurance will only give you temporary relief. The best thing for a nominee is the policy holder staying alive and earning well. So do not look for returns when you are choosing an insurance policy. As policy holder look for the least premium payable per lakh of sum assured. Best & cheapest is PURE TERM COVER.


For investment go for Mutual Funds. And note, nowadays, even most Mutual Funds do offer you Life Insurance Cover.

Do consult your financial advisor before investing.

Best of luck,

Srikanth Shankar Matrubai






Visit http://goodfundsadvisor.blogspot.com for Mutual funds
visit http://equityadvise.blogspot.com for Stocks and Shares

WHAT IS ASSET ALLOCATION?

Dear investors,
     ASSET ALLOCATION is the most important investment decision an investor will make in their portfolio because it explains most of the risk and return.
     WHAT IS ASSET ALLOCATION?
     ASSET ALLOCATION  involves dividing an investment portfolio among different asset classes based on an investor's financial requirements. The right mix of asset classes in a portfolio provides an investor with the highest probability of meeting their need.

LET ME EXPLAIN.......
After the Battering the Stock Markets has recieved, investors are jittery and pegged down their return expectations from a Sky hugging 30% to a Safe return of 8%. As long as their principal is safe and the returns are secure, they are happy. No fancy returns, no volatility, investors has had enough.
     But is this good?. The Drastic changes in investors preferences will hurt the Investor's performance. But Investors, worldwide, tend to base decisions on the immediate past performance of their investments. They will be tempted to buy into Equity, when the markets move up and sell when the markets start going downhill and thus lose on both sides.
This is where ASSET ALLOCATION comes into picture. 

There is no single category of investments that performs consistently across time, be it Equity, Debt, commodities, real estate, gold. All are cyclical in nature and A True Investor's best bet would be to have sensible ASSET ALLOCATION.
     Having 20-30% investment in Debt would insulate you from Equity Crash and help mitigate the overall Portfolio losses.
      ASSET ALLOCATION in practical scenario will help you manage risks in a sensible way by avoiding over exposure to any one single tool of investment. True, with ASSET ALLOCATION the investor has to face the fact that some component of his portfolio will earn a lower return then the best performing compenent.
      Sensible ASSET ALLOCATION is a valuable guard against the misconception of steady and predictable returns from any single investment category.

  

Visit http://goodfundsadvisor.blogspot.com for Mutual funds
visit http://equityadvise.blogspot.com for Stocks and Shares

IS THE TATA MOTORS FD SECURED????

Mr.Akhil sharma had a few more doubts and wrote:

sir,
you said that the Tata Motors Fixed Deposit Scheme is "SECURED".I read the offer document and it says that..
The Company hereby declares that:

(i) The Company has complied with the provisions of the Companies (Acceptance of Deposits)

Rules 1975, as amended upto date; (ii) The compliance with these rules does not imply that the

repayment of deposits is guaranteed by the Central Government; (iii) The deposits accepted/

renewed by the Company are unsecured and shall rank pari-passu with other unsecured

liabilities; (iv) The Company is not in default in the repayment of any or part thereof and any

interest thereon in accordance with the terms and conditions of such deposits.

So will my money be secure even if the company dissolves or is taken by some other company!!
thanks and regards
Akhil Sharma

SRIKANTH SHANKAR MATRUBAI replied :
Dear Akhil Sharma,
By saying "Secured", I did not mean it literally, I meant it only in Good Faith. It is as safe as the company itself. If it files for bankruptcy, then you queue up for your deposit dues.. GoI or FDIC is not giving any guarantee for the deposits..

Though, Their $ credit rating has been downgraded to bb-. Indian rating remains as is. There is also the Tata group name behind it (I doubt if the group will let one of its companies fail).....

Given all this, what do think might be % chance of failure?
Some of the regional and co-operative banks are offering fixed deposits at somewhat similar rates of interest. But the security of money with them is always questionable, especially in the current economic circumstances. If we have to trust any company, the Tata Group is undoubtedly among the favorites. Moreover, successful vehciles like Tata Indica, Tata Safari, Tata Ace etc and anticipatory success of Tata Nano makes the funds more more secure.

The major issue of course: Is Tata Motors going to be solvent? Going by how this stupid government is thinking of bailout a Satyam, I think it's a given that even Tata Motors is going to be bailed out. In Satyam they aren't even letting the shareholders go bust - usually bailouts protect debt holders, but here they're protecting those that took the risk!

Given this mentality it's likely Tata Motors won't be allowed to go bust, but if things get ugly money could be stuck for a while. The financials don't look very good, but that's true of everything. Comes down to trust. So if you like Ratan Tata - and most importantly, if he likes you - this might just be the "alpha" you're looking for.


If you are so worried, you can consider going for FD by State Bank of Bikaner and Jaipur which too has a 3 year FD paying 10.75% compounded Quarterly. Backed by Govt of India!!!! So, by foresaking .25% extra, you are avoiding risk and ensuring safety. There is nothing wrong in it. Go ahead.
Best of luck,
Srikanth Shankar Matrubai.

To this, Mr.Akhil Sharma wrote a thank you letter :
you are the best sir!!!
thanks a lot!
you are a big support to me!!
great going sir!
god bless you n your family!

Visit http://goodfundsadvisor.blogspot.com for Mutual funds
visit http://equityadvise.blogspot.com for Stocks and Shares

Best Tax Saving Instruments

This letter by me was published in Financial chronicle on January 27, 2009
Tax-saving tools ¦
DHIRENDRA Kumar’s article Here’s why you should invest in tax-saving mutual funds made very interesting reading.
People tend to ignore investing in tax schemes until the last minute and then rush in to invest in whatever instruments they can without analysing the pros and cons. Equities are the best avenue to invest your hard earned money.
ELSS not only saves taxes but also give consistent returns. The icing on the cake is the very short lockin period of only three years. The biggest advantage of investing in ELSS is that mutual funds are that rare investment avenue, where not only your investment but also your returns as well as principal are all exempted from tax.

Srikanth Matrubai Bangalore

Visit http://goodfundsadvisor.blogspot.com for Mutual funds
visit http://equityadvise.blogspot.com for Stocks and Shares

REASONS FOR FAILURE OF LIC JEEVAN AASTHA

This article by me was published in Financial Chronicle on January 26, 2009 edition.

MISSED target ¦
APROPOS to the report that LIC failed to garner targetted funds through Jeevan Aastha.
It must be mentioned that Jeevan Aastha failed because of huge misrepresentation by agents and even by LIC itself where it hides the real picture by using weasel words. The insurer claimed 10 per cent guaranteed return on the scheme but it’s not compounded.
An investment of Rs 48,000, as shown in their own illustration, gives Rs 1 lakh after 10 years. That’s about 7.5 per cent compounded, much less than the 10 per cent claimed. The “10% guaranteed return” was a marketing gimmick, and it’s very much likely that the whole marketing infrastructure was paid obscene amounts of money and commissions to push the plan through. In a time when every asset class is losing value, people seem to clutch on to anyone who will guarantee a return, even if it’s low.
The policy is not suitable for any age class. For Young people (20-35 age), investments in market-linked instruments such as equity and debt funds can better returns for a 10 year period than the returns given by the policy. For older people also the returns from the policy is also not much attractive.

Srikanth Matrubai Bangalore

Visit http://goodfundsadvisor.blogspot.com for Mutual funds
visit http://equityadvise.blogspot.com for Stocks and Shares

POST SATYAM FIASCO, CONTINUE WITH SUNDARAM SELECT FOCUS??

One Guest by name RR asked,

Hi,

I would like to have views about Sundaram Select Focus after Satyam fiasco. The MF has an exposure of 25.38 crores(abt 3.26%) investments in Satyam. How much do u think MF would be affected by the downfall in Satyam price?
I have a SIP of 2k per month on it. Do you all think i should continue with the SIP?

Srikanth Shankar Matrubai advised ;

Dear RR,
Sundaram Select Focus has been a consistent performer both during Bull Runs as well as Bear Runs. The Satyam Shockers has left many Fund Managers stumped and Sundaram was not alone. And even prudent Fund House like HDFC, Big DII like LIC too had a Bigger exposure than Sundaram. However, note that nowhere is any information available to the latest holding. Everyone is relying on Dec 2008 holding. Many Fund Houses would/could have already sold as some Funds like ICICI have clarified.

The break up of Sund. select Focus`s portfolio `ll be available at the end of this month & u can check the same from fund`s as well as other websites

Almost all the MFs have dumped Satyam shares from their portfolio, yes due to sudden price erosion some effect on NAV is there but after exit from satyam, the MFs r redeploying the money in other stocks, which `ll help u to recover ur losses on account of value erosion in satyam. .

Also note, even if the Fund house has had an exposure to Satyam after the fiasco, its NAV would have already reflected the same and there is no use selling the Fund after the NAV has already gone down.
Above all this, you are investing through SIP, which will protect from the downside More than a LUmpsum investor.
My sincere advise would be that you should continue your SIP investment in the Fund, as Sundaram Select Focus Fund has been a Better Performer than most Diversified Funds at any Given time.
Best of luck,
Srikanth Shankar Matrubai,

Visit http://goodfundsadvisor.blogspot.com for Mutual funds

visit http://equityadvise.blogspot.com for Stocks and Shares

"Charges in ULIPs & Mutual Funds"

My friend Ashal's answered this query recd from a guest. I found it very very interesting and thought you may like the same.


Mr.Vivek asked :
My insurance agent told me that There are many internal charges in MF which are charged by MF companies but these charges are not visible to Normal investor.

He suggested : In case of ULIP, there are 2 things :

- charges are completely transparent then MFs
- And in long Term (10-15 yrs), ULIPs are cheaper than MFs in terms of charges.

Please suggest and draw some clear picture about charges.

-vivek


Dear vivek, there is totally opposite picture what ur Insurance agent had advised u. Let me explain.
In case of MFs there r only 3 types of charges applicable -
1. Entry Load - It can be avoided if u invest directly to ur MF bypassing ur MF agent.
2. Exit Load - It can also be avoided by remaining invested for certain time period in that particular plan.
3. Fund Management Charge - It`s charged as a %age of total assets under the plan. Normally it varies from 0.25% to 2.5% depending upon type of funds (Debt to Eq.) as well as expertise of fund co. for a same set of MF plans, lower FMC Plan is always advisable for investment.

In case of ULIP following 4 types of charges r applicable.
1. Prem. allocation Charge - It may vary from as low as 1% to as high as 65-70% of ur first year prem. & reduced year after year or may remain same at a constant level say 4% or 5%.
2. Mortality Charges = It`s the basic cost of insurance & again it varies among Ins. cos.
3. Policy admin charges - Some ULIPs charge as low as 20 Rs. per month where as some charge as high as 200-300 Rs. per month. Again not constant among Ins. cos.
4. Fund Management charges - From 0.5% to 2.5% depending upon the type of Fund (debt to Equity).

From the above list u can judge urself that in case of MFs there is only 1 charge FMC, which u `ll have to pay but in case of ULIPs there r several charges & no common benchmark is there to see the impact of these charges. I do hope the message is clear to u.



Also visit my other blog goodtravelplanner.blogspot.com, http://buycall.blogspot.com and http://indiahotelstariff.blogspot.com/

INDIA WILL BOUNCE BACK

Read my Article in Today's(1/1/2009) Financial Chronicle on Page 12 on "INDIA WILL BOUNCE BACK"

BOUNCING back ¦ AS AN investor and a financial advisor, I am relieved to see the year 2008 being consigned to history. It was a year in which the financial crisis held the entire world in its grip. Equity markets crashed in nearly every country, while most financial institutions across the world were looking up to their respective governments to bail them out of the mess. Though India escaped relatively unhurt from the financial market turmoil, it was badly hit by the slowdown in the commodities market and real estate. Besides, the US recession badly affected the country's information technology (IT) sector. The outlook for 2009 is not too rosy either. With general elections due in April/May, we cannot expect the government to be aggressive on the reform front. The strong dollar is holding back the foreign institutional investors (FIIs) from pumping money in Indian markets. The continuing global recession will be a dampener on the inflows. The key takeaway, however, is that India will see growth when the world continues to be in a fullblown recession.

Thankfully, there is good news too. Falling crude prices will ease the pressure a bit on the country's balance of payment.

The government has admitted that the economy is faltering and taking pro-active steps to stem the rot before it gets out of hand. Easing interest rates have made companies breath easy.







The RBI is looking to make the housing sector as attractive as before and this is one sure shot way of igniting the spark back in the economy as most sectors such as cement and steel are directly and indirectly depended on the real estate sector. Giving stimulus to infrastructure would complete the picture and the recovery would be put on the fast track. Experts have diverse opinions but majority are optimistic that by mid-2009, we should be looking at a recovery and an eventual bounce-back by the Indian economy.

Srikanth Shankar Matrubai, Bangalore


Also visit my other blog goodtravelplanner.blogspot.com, http://buycall.blogspot.com and http://indiahotelstariff.blogspot.com/

MISCONCEPTIONS ABOUT LIFE INSURANCE

One of my friends sent me this mail. I thought this should be useful to you as well.


One of my friends sent me this mail. I thought this should be useful to you as well.





Also visit my other blog goodtravelplanner.blogspot.com, http://buycall.blogspot.com and http://indiahotelstariff.blogspot.com/

Will things change for the Better?

Dear all,
Greetings,
Everyone is witnessing one of the most turbulent times in the Indian and Global stock markets and particularly people like us engaged in the financial
advisory business are witnessing a tougher time to answer the questions of the customers.
In US the meltdown has happened because of the cheap credit availability in 2001-2002 when the Fed Funds Rate were reduced to 1%. The greedy
mortgage companies and investment bankers with a view that the property prices will always rise borrowed this cheap credit and funded/invested in the
high risky sub prime mortgage market. The funding was made available to anyone and everyone without scrutinizing their ability to repay and many of these
investment banks and mortgage companies were leveraged to an extent of 30-40 times of their capital.
_______________________________________________________________________________

Rate of Return Income
________________________________________________________________________________
Investments 3000 10% 300
Loan 2900 8% 232
Capital/NW 68% 68

Return on Capital 68%
________________________________________________________________________________



The above table shows what the greedy lenders were doing. They were making handsome returns on their capital. On capital of 100 they were making 68
and earning 68% return.
Now what happens if the property prices fall?

___________________________________________________________________________________

Value falls by 4% Value falls by 20%
__________________________________________________________________________________
Investments 3000 2880 2400
Loan 2900 2900 2900
Capital/NW 20 -20 -500

__________________________________________________________________________________


As we can see from above table when value of investment falls by only 4% the value of investment becomes 2880 against original investment of 3000. So on
a capital of 100 the loss of investment comes to 120. Enough to wipe off their entire capital.
The above table shows just a fall of 4% in property prices one becomes insolvent.
There has been over 500 billion dollars of such NPAs in the US. That's not the only problem but the larger problem is that the banks have become very
cautious in lending. They are hardly lending as they see all the borrowers with a jaundiced eye, seeing them becoming bankrupt. Banks are the main entities
to create credit flow and liquidity in the markets. This behavior of banks has added fuel to fire.
Also as one institution or bank provides for NPA they take a hit on their capital (For eg if the capital of Bank is 100 and NPA is 2 then the Capital becomes
98) so they have to infuse new capital against their hit to meet the capital adequacy requirements. Since it has become very difficult to raise capital in
current times, these banks are selling assets to meet those capital adequacy requirements that are adding to the problem.
What can be the impact on Indian Equity Markets?
Financial Crisis (Indian financial sector becoming insolvent)
Profit Growth Rates
Liquidity Flows
If we look at the above points one by one, i.e. Financial Crisis
India has hardly any exposure to such sub prime or bad assets.
Indian Banks are adequately capitalized. Some of the prudential norms are as follows.
The Indian Banks are supposed to maintain
25% SLR, i.e. they have to put 25% of their total funds into government securities
9% CRR, i.e. maintain 9% cash balance with RBI (Have been reduced to 6.5% to infuse liquidity)
So out of the 100 Rs they have 30-34 Rs that is extremely safe with government of India.
The Capital Adequacy Ratio of various banks are in the range of 11% -12%
i.e. the banks have landed to an extent of 8-9 times of their capital unlike in US where the borrowing were 30 -40 times of the capital.
So the Indian Banks or Financial institutions becoming bankrupt look unlikely. We have seen a South East Asian Crisis in 1997 however the same did not
impact the Indian Banking System.
There are some concerns related to the crisis in the debt schemes of mutual funds, the crisis again has occurred due to heavy redemption pressures from
the Institutional investors and not because of poor credit of papers being held by mutual fund debt schemes.
Approximately 40% of the mutual funds debt portfolio is in CDs (Certificate of Deposits) of bank that is highly liquid and government is also taking steps to
infuse liquidity in the system, a detailed analysis on the same is being worked out by our research team and shall be sent to you. We believe this is a
temporary phenomenon and all the debt schemes shall start getting inflows very soon.
Impact on Growth Rate
India has been growing at 9%+ for a last few years, there could be some impact on the same because of the global slowdown however that should be
marginal. Indian exports are only 18% of the GDP so we are not dependent on US to drive our growth. In certain sectors and business, which are dependent
on the global markets or global capital one may see some reduction in the growth rates.

But we have a very strong domestic consumption that is intact and is going to happen. The infrastructure growth is going to take place.
Within the negatives there are big positives also like reduction in global commodity prices that was a concern before a few months. The oil prices have fallen
from 150 dollars per barrel to 70 dollars per barrel that is a big positive for India to control inflation and interest rates.
In toto, one can conservatively expect India to grow at least 6%-7% and to my mind these are decent growth rates compared to the world economy.
The markets are again available at extremely cheap valuations as they are trading close to 10 times the P/E multiples.
The market valuations are like the one seen in 2003 when the EPS was 300 and markets were 3000 in 2003 i.e P/E Ratio between 9-10 (which is historically
the lowest range). From those levels i.e. 2003 if see the markets even at these levels in the worst market condition i.e after falling by 50% the SENSEX has
grown 3 -3.5 times translating into a return of 25% CAGR in the last five years (i.e 2003-2008)
Currently the markets are at similar levels where the EPS is close to 950 and markets are at 10000 i.e approximately P/E of 10.
You may imagine where can the markets go in the next five years from now..........
People understand the same but the concerns or worries are of Liquidity flows or market timing....
The markets have fallen drastically because of panic selling from FIIs. YTD selling by FII is close to 11 billion US Dollars.
The market cap of FIIs was 400 Billion dollars when the markets were 21000 and it has now reduced to close to 90 billion dollars because of
Fall in stock prices
Depreciation of Rupee
Panic selling
We may not see inflows from FIIs for some time to come and further outflows may take place which may not allow the market to move further however we
don't require to be dependent on FII flows to move our markets because we are savings economy and close to 300 billion dollars of savings takes place
every year.
Last year we got inflows to an extent of 16 billion dollars from Insurance Companies and 3.5 billion dollars from mutual funds. This financial year also mutual
funds have net invested close to Rs. 4265.5 cr or 1 Billion US Dollars into equities till 20th Oct 2008.
Even if we can as advisors convert 5% of such savings into mutual funds through SIP route we get ample amount of liquidity from the Indian Consumers for
the markets to rise, I think this is the time to act and make the Indian Consumers rich.
We have been saying the same thing again and again and are getting wrong every day. Customers are not interested in listening to what we are saying
however we will have to repeat the same thing, as it is being said by investment stalwarts and we have told at several occasions, I would like to reiterate
those words and will experience how powerful these words are.
Sir Warren Buffet
"It is the time that matters and not the market timing."
"We enjoy the process far more than the proceeds."
"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."
Sir Benjamin Graham
"It is the patience that gets tested and it is the conviction that gets rewarded."
Sir John Templeton
"Buy value not price."
"Buying low is a simple concept but how difficult it is to execute."
The world has witnessed such troubled times in the past also however the world has never come to an end and the world has come out of
such times.
Everything in the world is changing; the current situation will also change.
I don't know when it will change, but it will change certainly.
It is a great opportunity to make our investors rich; this is the time to ACT.
It is the test of patience. Be cool, patient and don't shy away to face the investor if the investor gets irked, just listen silently because that will also change. It
is a matter of time and you will have to repeat the same thing again and again to boost the investors' confidence as he is being bombarded negatively
through other quadrants of the society (mainly media).
Read a few of the above quotes you like and I am sure that current meltdown shall make all of us much stronger and instill a lot more conviction into all of
us, but that will happen with time, and believe me Time Flies.
Take Heart
Srikanth Shankar Matrubai


Also visit my other blog goodtouradvisor.blogspot.com and http://indiahotelstariff.blogspot.com/

Lesson learnt in this Market Meltdown

This Blog by me was printed in Financial Chronicle. You can visit http://www.mydigitalfc.com/stock-market/lesson-learnt-market-meltdown for details
You are here Home Blog
Lesson Learnt in this Market Meltdown
Nov 09 2008

By Srikanth Shankar Matrubai

The five year Big Bull run made everyone that there will always be sunshine. We tended to ignore warning signs and just brushed them aside as an aberration. I was no exception. Have I lost money?. Yes and no. Yes, because I am stuck with an asset which at a given point of time would fetch a lower valuation. NO, because, the loss is only notional.
I have seen two Bear Runs. First, post the Harshad Mehta Scam in 1992-93, next the Technology Meltdown in 2001. I learnt two Different Lessons in these Bear Runs.

In the first Meltdown, I learnt that "Never Invest All your Money at one go, it may the peak you are investing". In that Meltdown, where I burnt my finger as speculator, I qualified to become myself as an Investor. Lesson Learnt : Invest regularly at periodic intervals.

In the second Meltdown, I learnt that "Never Overexposure yourself to One Particular Sector". Lesson Learnt : Do not put all your eggs in 1 Basket. And the Biggest lesson which I learnt from this Bear phase is that I sold Good Stocks to protect my Huge losses in my Bad Stocks. So, ultimately, I was left with Dud Stocks and devoid of Blue Chips. And it took nearly 3 years to get my portfolio on the right track.

And in this present Meltdown, I have learnt not one but Two Big lesson, First, Book Profits Periodically.
Second, Spread Your Investment across Asset Classes including Debt.

I have taken these losses as tuition fees that I have paid to learn from the Markets.

The Biggest Reason why investors lost heavily in this market was due to the prolonged Bull run of 5 years, which made people invest without doing any research due to stocks going up almost every other day.

For me, the market is like an ocean. Anything you throw into the ocean always come back. Whatever you throw into the market will ultimately come back, provided you follow the market discipline.

I may sound naive, but I don't think I've lost anything. That is I have lost money on paper, which I had bought long long time age, and I am sure they will be back up sooner rather than later. The stock market going down doesn't mean the end of the world. The compaines I hold still continue to rake in profits.

But, yes, my faith to be completely invested in equities has been ripped to shreds, as the even the bluest of blue chips have got hammered. So, while I have not changed my current holdings, I will be looking to change my future asset allocation with a provision for debts and a bit of cash reserves to go with.

But, thankfully, I am not even 40 yet, so retirement is still a long way. I am sleeping peacefully, for I know I do not need this money for another 15 years at least.

My advice would also be on the same lines. It is always wise to have a properly diversified investment strategy based on your risk tolerance and as you age, you should become more conservative and shed your aggressiveness and shift towards debt and Large Cap Mutual funds.

I also plan to diversify further by investing in some International Funds.

I also plan to invest through SIPs to take advantage of NAV volatility (and indirectly time the market!) and restrain myself from making Lumpsum Investment.

I also plan to diversify further by investing in Other Asset Classes too like Gold, Silver and commodity funds by committing a small percentage.

I have decided not to borrow funds for investing. (this lesson I learnt in 1992-93 bear run).

I have decided to avoid ULIPs.

I intend to invest only for Long Term.

I`d like to end with some quotes that are defining my behaviour on the market these days -'Be fearful when people are greedy and be greedy when people are fearful.' - Warren Buffet

“Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell,” - Sir John Templeton (founder of Franklin-Templeton).

'buy when there`s blood in the streets'


Visit http://www.mydigitalfc.com/stock-market/lesson-learnt-market-meltdown

Current Market Scenario

Current State of Markets – An Opportunity

Historic times

Indeed, we are witnessing historic and abnormal times with ‘Once in a generation’ events unfolding in the Western financial world. Western countries are facing a ‘structural’ problem, and not a ‘cyclical’ problem. Uncertainty, confusion and fear are rampant.

It’s an Advanced Economies problem, not Indian

At the root of the Western financial crisis, is the overstretched U.S consumer who has lived beyond his means. Added to it, was poor lending standards by banks and a heavily leveraged financial system. The entire edifice of trust and confidence in financial markets has now broken down. Lending standards will tighten and their banking system will have to deleverage as most banks are short on capital. This will surely lead to a slowdown in economic growth and maybe a recession in the U.S and Europe. In all this, it is important to note that it is a Western problem and not an Indian one.

But, collateral damage in the short term

In this age of global financial linkages and uncertainty of unparalled proportions, ‘collateral’ damage could not have been avoided. What Indian markets have seen is the impact of these financial linkages and a ‘ripple’ effect. Large FII outflows in India primarily reflect ‘Position Liquidation’ and not selling due to serious concerns on long term fundamentals of India. Position Liquidation has been mainly caused by (1) general factors such as fear, lowering exposure to equities as an asset class and (2) firm specific factors such as redemptions, closure, reducing leverage. It is important to note, however, that the fall in Indian markets is in line with the rest of the World.

India is structurally strong

Indian banking system is structurally sound. Indian banks are strong, well regulated and prudent in their lending standards. Indian banks are some of the best capitalised banks in the World with an average capital adequacy of 13% and leverage of 14 times. Compare this, with a capital adequacy of less than 10% and leverage of 20-30 times for Western banks. Further 25% of Indian banks deposit base is statutorily invested in SLR securities – i.e. government securities, unlike anywhere in the World. This is over and above a CRR of 6.5% with the RBI. Indian banks have no exposure to U.S Sub prime.

India is a high savings economy and Indian households are underleveraged. India is a domestic economy, unlike most other Emerging and Asian economies which are dependent on exports to the Western world for their growth. India’s demographics, with one of the youngest populations in the World, will allow high growth rates for a long time to come.

It is interesting to see that, so far, Indian economy and its markets have continued to function uninterrupted and without the requirement of any regulatory changes or governmental intervention. This is not the case with most markets in the World where we have seen bailouts, government intervention in the banking system in terms of guarantees, banning of short sales, halting of trading etc. India has effectively continued to function as a free market economy.

India’s fundamentals are improving

A global recession, as it is building up to be, will net-net be beneficial to India. Two of the biggest concerns on India have been high crude oil prices, which makes government’s finances vulnerable, and high inflation. Crude oil prices have already corrected 50% from the peak of US$145/bbl and other commodity prices have also crashed by 40-50%. A global recession can lead to a further correction in commodity prices. Being a net importing country, India is a big beneficiary of this.

No doubt a global slowdown will also slow our Growth rate. But what is important to note is that India still will continue to grow at around 7% p.a., a high growth rate in itself and will also continue to be the second fastest growing economy in the World. More importantly, our Growth Gap over the rest of the World will be maintained. Chart 1 & 2 below compare the actual and forecast GDP growth in 2007 and 2009 respectively as per the World Economic Outlook report issued by the IMF in October 2008.

Source : IMF

India has enough policy ammunition to support growth going forward, as the recent rapid action by the RBI in cutting CRR and Repo rate shows. With a global slowdown, inflation and interest rates can now start falling and in turn support growth.

Market at very attractive levels

Equity markets always, ultimately, reflect the fundamentals and growth of the economy and corporate profits. We expect that a 15-20% p.a. corporate profit growth over the next 3 years is easily achievable, especially given the possibility of lower inflation and lower interest rates going forward. Valuations have also now corrected steeply. Indian markets are at 10x P/E on one year forward earnings, compared with the last 15 years average of around 15x. Remember, India has been never been as strong in the last 15 years as it is now.

Expect more divergence

Unlike earlier, we have a different economy and market now, where within the overall growth there will be large differentials in growth between sectors and also between companies within the same sector. In a global slowdown backdrop, there will be gainers and losers. This will also get reflected in stock performances. Stock selection has now become that much more crucial.

Waiting for the FIIs?

Isn’t everyone waiting for FII inflows to start back in? True, FII inflows are crucial. But there are not going to be any warning bells before flow improve. The biggest surety for flows to come back in the market is strong fundamentals. Liquidity always, ultimately, flows towards an attractive asset class. It is fundamentals that drive liquidity and not the other way round.

In the past 25 years, whenever there was a crisis, money flowed away from emerging markets and back into the Western financial system due to ‘risk aversion’. But, this was always in the context of a structurally strong U.S and Western world. Things have changed now. Once the global financial crisis settles down, we think we can see renewed interest in the structural stories of Asia and India in particular. The entire concept of ‘Risk Aversion’ we think will get redefined over the coming few years.

Don’t time the markets

At Lotus India, we strongly recommend investors not to attempt market timing and engage in bottom fishing. The truth is that no one can time the markets. The ideal thing to do is to invest with a longer term horizon when the fundamentals and valuation are attractive. Whether markets correct further from here or not is not relevant. When you look back three years later, it will not matter whether one invested at 10,000 index or 8,500 index or 12,000 index.

Lotus India’s Philosophy and Strategy

At Lotus India, we have always emphasized on a balance between ‘risk’ and ‘return’, for delivering a consistent and dependable performance. Our investment process and team work are geared towards disciplined stock selection.

We continue to maintain the normal level of cash balances i.e. 5-10% in our portfolios. We believe that playing with cash levels is a risky strategy. Response to emerging situations has to come through suitable changes in stock selection and portfolio construction strategies in a fully invested portfolio.

During the past couple of months we have reviewed our portfolio and we are investing mainly in the following kinds of companies:

· companies which are already fully funded in terms of their growth plans

· companies which have pricing power

· companies where expectations are realistic and are there no exagerations

· companies where valuations have corrected significantly without a significant change in business fundamentals.

We are overweight the Banking, Oil Marketing, Telecom, Engineering, FMCG and Media sectors. We are underweight IT services, Metals, Real Estate and Pharma sectors. In the last 2 months we have increased allocation to our theme ‘Beneficiaries of Global slowdown’ in comparison with our other themes of ‘Consumerism’ and ‘Investment’.

Advice for investors

At Lotus India, we look upon the current state in the Indian equity markets as a serious opportunity for disciplined equity investors. This surely will turn out to be an exceptional opportunity for investing in Indian equities.

A few simple rules to follow

• Have confidence in the India growth story
• Look upon the current times as an opportunity
• Do not time the markets
• Invest for the long term – at least 2-3 years

regards,

Tridib Pathak

Chief Investment Officer - Equity

Lotus India Asset Management Co Pvt Ltd

(A JV between Fullerton Fund Management Group and Sabre Capital Worldwide)

Letter from Grandpa

Read this, it is very interesting.

An open letter from Grandpa

LATELY, I have been thinking a lot about the Lehman crisis . Spending money that they didn't have and going beyond their means is one of the main reasons for their situation today. In fact that is the cause for the current economic crisis in the US.
When I see all this happening, I can only remember the good old days. Then, karz was bad. People looked down upon those who took loans. Parents would not give their daughter's hand in marriage to a man with loans.
But of course, the times have changed now. Everyone I know has a loan. The buzz word is EMI (equated monthly installment). Today, you can buy everything on EMI - a house, a television, an i-Pod. In fact I know of someone who just bought a fancy BMW 3 series on EMI, instead of buying a cheaper car outright with cash. I mostly prefer to take public transport, but then I am an old man with old thoughts!
Anyway, coming back to what caused the crisis. Imagine having Rs 2 lakh in your bank account, no regular income, yet buying a house worth Rs 65 lakh, in the hope of selling it for a higher price. Even if the price of the house fell by just 5 per cent (that is Rs 3 lakh), you will go bankrupt. This is what Lehman Brothers did; with around USD 20 billion they went and bought assets worth over USD 600 billion. Isn't it suicidal and simply foolish?
I am sure things would have been different, had I been the head of Lehman brothers. But who wants an old conservative man like me to head a complex financial institution.
But there are a few lessons that we can learn:

1. Live a balanced life and avoid overspending.
Tip: As soon as you get your monthly salary, set aside a fixed amount, usually 35 per cent, for insurance, savings and investments. You can then spend the rest.
2. Not all loans are bad. Loans that are 'need based' (home loans, education loans) can always find a place in your finances against those that are largely 'want based' (personal loans, car loans).

3. Borrow only if repayment is financially comfortable.
A thumb rule: Keep EMIs within 30 per cent of your monthly income

In that respect, there is one American who I really respect – Warren Buffet. He has lived in the same ordinary house for over three decades, drives his own medium sized car and leads an extremely regular 'middle class' life. If that's all it takes for the richest person on earth to be happy, why do all of us need to take extra stress just so that we can get things which aren't even essential?

India still has a lot of growth ahead and the future holds immense opportunities for us. Let us make the most of it and save and invest it wisely instead of wasting our precious little on things we don't need.

HDFC Mutual Fund people sent me this interesting letter.
regards,
Srikanth shankar Matrubai

Markets Bottoming Out

My letter Published in Financial Chronicle on 27 October, 2008

BOTTOMING OUT

sir,
Stock Markets are the best asset class to invest in but at the right time, in the right amount and in the right direction of the market. Investments in the markets are also a great learning experience, which should always be taken in the right spirit. Though the market still looks volatile, I think it is the right time to buy equities.
Peter Lynch, the famous Fidelity Fund manager, says the secret of getting rich in stocks is to do your homework and know what you are holding. Far from being scared, you should take this opportunity to get yourself some great stocks, which are available at dirt-cheap valuations.
Buy now, then sit back and enjoy your Diwali or whatever. Don't look at the stocks for next six months, whatever happens.
Srikanth Shankar Matrubai

Lesson learnt by me in this Market Crash

The five year Big Bull run made everyone that there will always be sunshine. We tended to ignore warning signs and just brushed them aside as an aberration. I was no exception. Have I lost money?. Yes and no. Yes, because I am stuck with an asset which at a given point of time would fetch a lower valuation. NO, because, the loss is only notional.
I have seen two Bear Runs. First, post the Harshad Mehta Scam in 1992-93, next the Technology Meltdown in 2001. I learnt two Different Lessons in these Bear Runs.
In the first Meltdown, I learnt that "Never Invest All your Money at one go, it may the peak you are investing". In that Meltdown, where I burnt my finger as speculator, I qualified to become myself as an Investor. Lesson Learnt : Invest regularly at periodic intervals.
In the second Meltdown, I learnt that "Never Overexposure yourself to One Particular Sector". Lesson Learnt : Do not put all your eggs in 1 Basket. And the Biggest lesson which I learnt from this Bear phase is that I sold Good Stocks to protect my Huge losses in my Bad Stocks. So, ultimately, I was left with Dud Stocks and devoid of Blue Chips. And it took nearly 3 years to get my portfolio on the right track.
And in this present Meltdown, I have learnt not one but Two Big lesson, First, Book Profits Periodically.
Second, Spread Your Investment across Asset Classes including Debt.
I have taken these losses as tuition fees that I have paid to learn from the Markets.
The Biggest Reason why investors lost heavily in this market was due to the prolonged Bull run of 5 years, which made people invest without doing any research due to stocks going up almost every other day.
For me, the market is like an ocean. Anything you throw into the ocean always come back. Whatever you throw into the market will ultimately come back, provided you follow the market discipline.

I may sound naive, but I don't think I've lost anything. That is I have lost money on paper, which I had bought long long time age, and I am sure they will be back up sooner rather than later. The stock market going down doesn't mean the end of the world. The compaines I hold still continue to rake in profits.

But, yes, my faith to be completely invested in equities has been ripped to shreds, as the even the bluest of blue chips have got hammered. So, while I have not changed my current holdings, I will be looking to change my future asset allocation with a provision for debts and a bit of cash reserves to go with.
But, thankfully, I am not even 40 yet, so retirement is still a long way. I am sleeping peacefully, for I know I do not need this money for another 15 years at least.

My advice would also be on the same lines. It is always wise to have a properly diversified investment strategy based on your risk tolerance and as you age, you should become more conservative and shed your aggressiveness and shift towards debt and Large Cap Mutual funds.
I also plan to diversify further by investing in some International Funds.
I also plan to invest through SIPs to take advantage of NAV volatility (and indirectly time the market!) and restrain myself from making Lumpsum Investment.
I also plan to diversify further by investing in Other Asset Classes too like Gold, Silver and commodity funds by committing a small percentage.
I have decided not to borrow funds for investing. (this lesson I learnt in 1992-93 bear run).
I have decided to avoid ULIPs.
I intend to invest only for Long Term.
Best of luck,
Srikanth Shankar matrubai

Doing same mistakes again and again??

When sensex was around 18000-21000 levels people were thinking ( many individuals actually entered the stock market) of investing at that time because the picture was very very prudent. People believe in India`s growth story. Now as the market have corrected more than 50% people also think that sensex would tank more & there would be panic all around. Indian people are making the same mistake again & again.Buying at highs & selling at lows. If you are selling your shares at this levels then you are again doing the same mistake. I know many friends investing by scrapping their FD`s at the levels of 18000-21000 of sensex & the same friends selling their shares at 10000 sub levels & putting their money into FD`s at 10000 levels. This is big mistake. Another mistake is very good amount of people have taken personal loans from banks & started trading into stocks. Well i don`t know how many of them actually earned money but i know quite a few of them ending in huge losses. This means that stock market is not a day`s game. You have to be patient when it comes to investing. Someone rightly had said that Stock market is the best place to invest when there is uncertainity all around. So start investing friends in smaller quantities. Don`t come under talks of those fools who are telling that our economy will collapse because of this. India has 35% of savings rate one of the highest in the world. There is no need to worry. Our future is bright if you have the patience for 1-2 yrs. of investing.
Think over it....
Best of luck,
Srikanth Shankar Matrubai,
Bangalore

WHY MARKETS ARE TANKING........

WHY THE MARKETS ARE TANKING....
The fall in the Indian Equity Market is due to systemic global risk that is common to entire market and not specific to Indian Market.
The big Foreign institutions are liquidating because they borrowed a lot of money and made investments whose value depended on home prices and credit. American Home prices have fallen dramatically, and credit is hard to get now, so the value of their investments is down. That causes the people who lent them money to immediately demand more collateral or repayment.
Either way, those big investors who borrowed all that money must sell something to come up with the cash... and fast. Unfortunately, the housing-related investments they bought aren`t popular right now and can`t be sold quickly. So the large institutions are selling anything they can sell quickly. Stocks are liquid and sell quickly, so investors are calling up their brokers and telling them to sell everything right away.

That`s why stocks have been falling so much. It`s like a giant bankruptcy sale. Or perhaps, to be a little more accurate, it`s a giant sale that represents a mass attempt to prevent bankruptcy.

Not only have overindebted investors been selling, many others are selling simply because... everyone else is selling. They`re even selling gold by the truckload.
This is not going to stop for sometime, but surely it cant continue losing 1000 points a day, as another 9 days like that we will be zero.So just stay calm and let this tsuanmi pass. it will clear, sky is not falling, some people want to project it that way for their own self interest. for some people at 3200 reliance was a buy at 990 it is a sell, tell me what has happened to Reliance in this 10 months? Long term investors should not panic in this real panicky situation and hang on and slowly buy quality stocks in the next coming 12 months. and surely sensex which appears going to 2900 levels from where this bull run started will be at 30000 in 3 0r 4 years.and then at 30000 all will exclaim it is buy time. watch out stay calm.People who look at downside of things are more successful than those who look only at upsides.Never act in HASTE.
Best of luck,
Srikanth Shankar Matrubai,
Bangalore

Has the Markets Bottomed Out???

HAS THE MARKET BOTTOMED OUT?

You`re going to think I`m crazy for writing this, but right now, there is less risk in stocks than at any time in our lives. Do not take my word just like that, take it from what the greatest investor in history, Warren Buffet, said only yesterday "It's time to BUY". Warren Buffet has not made such an enthusiastic statement in public in the last 34 years.
Stock markets are the best asset class to invest in but at the right time, right amount and right direction of the market. Investments in the markets are also a great learning experience which should always be taken in the right spirit.
When you understand the businesses you`re holding(the stocks you are holding), what they`re worth, and what kind of future they have, you can sleep soundly at night, no matter what the share prices do in the short term. Peter Lynch, the famous Fidelity fund manager, says the secret to getting rich in stocks is not getting scared out of them. The secret to not getting scared out of stocks is to do your homework and know what you`re holding.
Companies like Reliance and L&T are cash generating machines. They have great businesses. Hang on to these good businesses, they are worth far more than they are being traded these days. They are traded at ridiculous valuations.
Far from being scared, you should take this opportunity to Get yourself some Great Stocks which are available at dirt-cheap valuations.
Buy now, then sit back and enjoy your coffee, tea or whatever. Don`t look at the stocks for the next six months, whatever happens. This way your next Diwali is going to be fabulous, like you have never had earlier.
Best of luck,
Srikanth Shankar Matrubai,
Bangalore

Negative Returns in Liquid Fund??????

Dear All,
Recently, Business Standard carried a article where it claimed that a Liquid Fund from Edelweiss Mutual Fund has posted a Negative NAV. I was stumped, how can this happen?. It was next to impossible.
Thankfully, Edelweiss People responded with a email clarifying things. This is how their email went :

From: EdelweissMF
Sent: Wednesday, October 15, 2008 11:43 AM
Subject: IMPORTANT: Clarification on today's article in Business Standard
Importance: High

Dear Sir / Madam,

With reference to the article on "Edelweiss Liquid Plus Fund Dividend Fortnightly " having seen negative returns in Business Standard today, please note that this data is factually totally incorrect and incomplete. While the source of data is valueresearch and from a factual point of view, the NAVs mentioned are right, the interpretation of data by the journalist is absolutely wrong and irrelevant. The journalist has first of all compared returns of the dividend option (instead of growth as is the industry norm). Moreover, he has incorrectly presented this incomplete data. The reason why there is a fall in the NAV is because of a declaration of dividend on Monday, the 13th of October on the Friday NAV. Obviously if a dividend has been declared in any scheme, the NAV will fall to the extent of the dividend declared and that is exactly what has happened in this case.

Please not that there has not been even a single day of negative returns in either the Edelweiss Liquid Fund or the Edelweiss Liquid Plus Fund till date.

Enclosed are the returns as on October 13th 2008 of both Edelweiss Liquid Fund and Edelweiss Liquid Plus Fund:

SIMPLE ANNUALIZED RETURNS FOR EDELWEISS LIQUID FUND
Scheme Name	NAV (13-Oct-08)	1 Week	2 Weeks	1 Month	Since Inception
Edelweiss Liquid Fund - IP - Growth	10.1109	11.7329	12.9828	11.9325	11.9054
Edelweiss Liquid Fund - Ret - Growth	10.1108	11.4223	12.7747	11.8958	11.8947
Edelweiss Liquid Fund - Super IP - Growth	10.1109	11.4739	12.9568	11.9202	11.9054
Crisil Liquid Fund Index		5.1966	7.854	8.1131
ABSOLUTE RETURNS FOR EDELWEISS LIQUID PLUS FUND
Scheme Name	NAV (13-Oct-08)	1 Week	2 Weeks	1 Month	Since Inception
Edelweiss Liquid Plus Fund - IP - Growth	10.1065	0.2152	0.4253	0.957	1.065
Edelweiss Liquid Plus Fund - Ret - Growth	10.1062	0.2152	0.4253	0.953	1.062
Indices
Crisil Liquid Fund Index		0.0854	0.2797	0.6446
Source: www.mutualfundsindia.com

Returns are computed of the growth options of the respective schemes. Past performance may or may not be sustained in future. Such information is not necessary indicative of future results and may not necessarily provide a basis for comparison with other investments.

Both Edelweiss Liquid and Liquid Plus Funds continue to outperform their benchmark across various time frames.

We look forward to your continued patronage of our funds.

Warm regards,

Marketing@EdelweissMF

And, wonder of wonders, Business Standard carried the Clarification the next day.
Thank God for small mercies.
Srikanth Shankar Matrubai