Dear Investors,
As you must have noticed, we will be completely exiting the NASDAQ 100 ETF (MON100).
When we had initially onboarded this instrument, against the convention, our thesis was:
To hedge against INR depreciation as Fed interest rates increase
And to hedge against the drawdown in the Indian mid and small cap space.
However, due to these following reasons we have decided to exit this instrument:
1) The limit set by SEBI for a mutual fund house to invest in overseas ETF’s has neared the limit, and MON100 being one of these international ETF’s will not be able to create nor unit nor accept new investment. This hampers fresh investments going forward.
2) With these latest geopolitical undercurrents and valuations now attractive more than ever in India’s mid and smallcap space, we are confident that the time to reallocate is now. We are buying select stocks that we have been monitoring whose valuations have corrected by a significant margin that we believe will be multi-baggers.
If it wasn’t primarily due to the overseas ETF limit, we would have continued to hold the instrument, and would have exited it at the right valuations in the medium term.
Investors who have trusted us and joined our journey before January 2022, will be taking a small loss in relative terms, and we are omniscient of this fact. Our objective is to create wealth over the long term, and these times are part of our journey.
Thank you for your continued trust and support,
Divam Sharma
CEO & Fund Manager