Deepak and Shray discuss the unexpected quirks and consequences of investing in mutual funds and pooled vehicles in general. The discussion covers how your returns and experiences can be impacted by other investors' actions, including issues with inflows, outflows, cutoff timings, and NAV calculations. Specific cases like DHFL, Yes Bank, and Zee promoter bonds are examined to highlight how complexities in pooled vehicles can affect investment decisions. Additionally, the episode provides insights on how to navigate these challenges and the importance of understanding the nature of pooled investments.
00:00 Introduction
00:43 Understanding Mutual Funds and Pooled Vehicles
02:43 Complexities of Pooled Vehicles
07:43 Impact of Inflows on Fund Composition
13:18 Challenges with Outflows and Debt Funds
20:00 Timing Issues and NAV Calculations
29:04 ETFs vs Mutual Funds: Arbitrage and Market Behavior
33:01 Case Studies: Yes Bank, DHFL, and Zee Promoter Bonds
37:50 Side Pocketing and Arbitrage
49:12 Investor Strategies and Market Timing Challenges
55:43 Conclusion and Final Thoughts
