Latest news with #NithinKamath
Time of India
13 hours ago
- Business
- Time of India
Traders can go bust even when they know the outcome; Zerodha cofounder Nithin Kamath explains how
Zerodha founder Nithin Kamath , in a post shared on X (formerly Twitter), discussed the findings of an investment experiment conducted by ElmWealth , which revealed that nearly half of the participating finance students lost money despite correctly predicting market movements more than half the time. Kamath highlighted the experiment in a detailed thread, calling attention to the dangers of poor position sizing and risk management in trading. Explore courses from Top Institutes in Select a Course Category CXO Others Cybersecurity MBA healthcare Finance Data Science Product Management Digital Marketing Operations Management Technology Project Management others Management Public Policy Design Thinking Leadership MCA PGDM Skills you'll gain: Digital Strategy Development Expertise Emerging Technologies & Digital Trends Data-driven Decision Making Leadership in the Digital Age Duration: 40 Weeks Indian School of Business ISB Chief Digital Officer Starts on Jun 30, 2024 Get Details Skills you'll gain: Technology Strategy & Innovation Emerging Technologies & Digital Transformation Leadership in Technology Management Cybersecurity & Risk Management Technology Strategy & Innovation Emerging Technologies & Digital Transformation Leadership in Technology Management Cybersecurity & Risk Management Duration: 24 Weeks Indian School of Business ISB Chief Technology Officer Starts on Jun 28, 2024 Get Details Skills you'll gain: Customer-Centricity & Brand Strategy Product Marketing, Distribution, & Analytics Digital Strategies & Innovation Skills Leadership Insights & AI Integration Expertise Duration: 10 Months IIM Kozhikode IIMK Chief Marketing and Growth Officer Starts on Apr 7, 2024 Get Details Skills you'll gain: Technology Strategy & Innovation Emerging Technologies & Digital Transformation Leadership in Technology Management Cybersecurity & Risk Management Duration: 24 Weeks Indian School of Business ISB Chief Technology Officer Starts on Jun 28, 2024 Get Details Interesting experiment by @ElmWealth : 118 finance students were given tomorrow's WSJ front page 24 hours before the news broke. You'd expect easy profits. Instead, half lost money and 16% went completely bust. It wasn't because their predictions were wrong. They called market… — Nithin Kamath (@Nithin0dha) July 21, 2025 According to Kamath's post, 118 finance students were given access to the Wall Street Journal's front page 24 hours in advance over a simulated 15-day period. While the information advantage should have logically led to profits, it was noted that half of these students lost money, and 16% went completely bust. The students accurately predicted market direction 51.5% of the time, better than random chance, yet still failed to make gains. Kamath explained that the core problem was not the quality of their predictions but their position sizing. 'Many students bet huge portions of their portfolio on a single trade. Some used 20x, even 60x leverage. When they were right, they made money. But when they were wrong, they blew up. All it took was a single misstep,' Kamath noted in his post. In contrast, five experienced traders who ran the same simulation achieved dramatically different outcomes. Kamath said, 'Very different outcome: +130% average returns. Why? They knew how much to risk. They bet small when uncertain, and big only when the odds were clearly in their favor.' He emphasized that this difference boiled down to understanding the art of position sizing. Kamath pointed out a crucial takeaway: 'Even if you could predict the future, it wouldn't save you from poor risk management. Trading isn't just about being right. It's about surviving long enough to stay in the game.' Quoting from the experiment, Kamath noted that most retail traders focus primarily on predicting market direction, but smart traders focus on how much to bet and how to manage risk even when they are correct. He cited the wisdom of Ray Dalio: 'He who lives by the crystal ball will eat shattered glass.' The experiment, which referenced a theory by Nassim Nicholas Taleb, supported the view that even with early access to market-moving news, traders could still fail without disciplined risk control. Kamath concluded his post, stating, 'Because in the markets, being right means nothing if you go bust before you're proven right.' In the end, the financial industry's pursuit of better predictive models should also focus on sensible investment sizing to fully realize the potential of their strategies. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) ETMarkets WhatsApp channel )
Entrepreneur
4 days ago
- Business
- Entrepreneur
JioBlackRock Gets Sebi Nod for Four Mutual Fund Schemes
The approved offerings include the JioBlackRock Nifty 8–13 Yr G-Sec Index Fund, Nifty Smallcap 250 Index Fund, Nifty Next 50 Index Fund, and Nifty Midcap 150 Index Fund. Among these, three are equity-based index funds, while one is focused on government debt securities. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. JioBlackRock Asset Management, the joint venture between Jio Financial Services and global investment firm BlackRock, has received regulatory approval from the Securities and Exchange Board of India to launch four mutual fund schemes. The approved offerings include the JioBlackRock Nifty 8–13 Yr G-Sec Index Fund, Nifty Smallcap 250 Index Fund, Nifty Next 50 Index Fund, and Nifty Midcap 150 Index Fund. Among these, three are equity-based index funds, while one is focused on government debt securities. The company aims to tap into India's growing investor base with a digital-first approach that emphasises simplicity in fund offerings. This strategy aligns with models used by fintech firms like Zerodha, Groww, and Navi. With strong financial backing and access to a large user base, JioBlackRock is expected to bring increased competition to the market. Nithin Kamath, founder of Zerodha, responded positively to the entry of JioBlackRock, suggesting it could help broaden India's investor base. He also reiterated Zerodha's commitment to long-term profitability and customer-focused services, noting that financial strength alone does not create enduring advantages in stockbroking. Earlier this month, JioBlackRock completed its first new fund offer, raising INR 17,800 crore across three schemes. The offer attracted over 90 institutional investors and more than 67,000 retail investors in just three days. In addition to mutual funds, Jio Financial is expanding into wealth management and stockbroking. It recently established Jio BlackRock Broking Pvt Ltd, which is awaiting regulatory clearance to begin operations.
India Today
7 days ago
- Business
- India Today
Why Zerodha's Nithin Kamath wants short selling made easy in India
Zerodha founder and CEO Nithin Kamath has raised a red flag about how India's stock market works today. He says that the Indian share market badly needs a simple way for people to short sell stocks, or else prices will stay distorted and wrote on X, 'The lack of short selling in Indian markets is causing potential market distortions.' advertisementIn simple words, short selling means you borrow a stock, sell it when you think the price will drop, and later buy it back at a lower price to return it. In many developed markets, this is normal. But in India, Kamath says it's still a big headache. He further explains, 'Unless we make shorting of stocks easy in the Indian markets, price discovery will be impaired.'Right now, India's market is what experts call 'long-only'. That means most people only buy shares hoping they will go up, very few bet on prices falling. Kamath says this has made the whole system a bit unbalanced. 'India has been a structurally long-only market with almost no shorting activity, because borrowing stock to short is really hard and is an offline process,' he someone wants to short a stock today, they mostly do it through futures or options. But there's a catch, there are only 224 stocks in India that have futures and options. So if a bad company is not on that list, no one can short it easily. Plus, these contracts expire every month, which means traders have to pay extra to roll them over if they want to keep the bet going, said Kamath.'Because of this long-only bias, there's probably very little short-selling talent as well, even if large funds want to start shorting,' he to him, short sellers are actually good for the market. While many people think they are the villains who bet against companies, Kamath says they do an important job by pointing out what's wrong. 'Short sellers, although they have a bad reputation, are massively underrated. Think of them as janitors; they clean up all the garbage in the markets and make them more efficient,' he put, Kamath hopes that by making short selling simpler and online, India can clean up its markets just like those hidden janitors he spoke about, the short sellers who keep things in check.- Ends
Time of India
7 days ago
- Business
- Time of India
Brigade Enterprises shares in focus as board approves Rs 1,500 crore NCD issue
Shares of Brigade Enterprises are expected to remain in focus on Tuesday after the company announced that its Board of Directors has approved the issuance of Non-Convertible Debentures (NCDs) aggregating up to Rs 1,500 crore on a private placement basis. In a regulatory filing dated July 14, the company said that its board considered and approved raising funds through NCDs in one or more tranches for an aggregate amount not exceeding Rs 1,500 crore (Rupees one thousand and five hundred crores only). The issuance, however, is subject to applicable regulatory and statutory approvals. According to the filing to the stock exchanges, the securities to be issued are Non-Convertible Debentures and will be offered through the private placement route. The total issuance size, as well as the number of securities to be issued, will cumulatively not exceed Rs 1,500 crore. The company also stated that the debentures may be listed, with the decision to be taken by the Board of Directors or Committee of Directors at the time of allotment. Brigade Enterprises clarified that the issuance may occur in one or more tranches, depending on the company's funding requirements and market conditions. Brigade Enterprises share price history The shares of Brigade Enterprises have declined 17.18% over the past one year. Year-to-date (YTD), it has fallen 12.29%. In the last six months, the stock has gained 0.24%, while over the past three months, it has risen 16.29%. However, over the last one month, the stock has declined 8.52%. On Monday, Brigade Enterprises shares closed 2% higher at Rs 1,084.90 on the BSE. Also read: Lack of short selling in Indian markets causing potential market distortions: Zerodha's Nithin Kamath ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Economic Times
7 days ago
- Business
- Economic Times
Brigade Enterprises shares in focus as board approves Rs 1,500 crore NCD issue
Shares of Brigade Enterprises are expected to remain in focus on Tuesday after the company announced that its Board of Directors has approved the issuance of Non-Convertible Debentures (NCDs) aggregating up to Rs 1,500 crore on a private placement basis. ADVERTISEMENT In a regulatory filing dated July 14, the company said that its board considered and approved raising funds through NCDs in one or more tranches for an aggregate amount not exceeding Rs 1,500 crore (Rupees one thousand and five hundred crores only). The issuance, however, is subject to applicable regulatory and statutory approvals. According to the filing to the stock exchanges, the securities to be issued are Non-Convertible Debentures and will be offered through the private placement total issuance size, as well as the number of securities to be issued, will cumulatively not exceed Rs 1,500 company also stated that the debentures may be listed, with the decision to be taken by the Board of Directors or Committee of Directors at the time of allotment. ADVERTISEMENT Brigade Enterprises clarified that the issuance may occur in one or more tranches, depending on the company's funding requirements and market conditions. ADVERTISEMENT The shares of Brigade Enterprises have declined 17.18% over the past one year. Year-to-date (YTD), it has fallen 12.29%. In the last six months, the stock has gained 0.24%, while over the past three months, it has risen 16.29%. However, over the last one month, the stock has declined 8.52%. On Monday, Brigade Enterprises shares closed 2% higher at Rs 1,084.90 on the BSE. ADVERTISEMENT Also read: Lack of short selling in Indian markets causing potential market distortions: Zerodha's Nithin Kamath (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
