SMC Global Securities Limited

📈 SMC Global NCD📊 💰 Earn up to 10.50% P.A. with secured, rated, and listed Non-Convertible debentures (NCDs) 📲 Apply Now: https://t.co/0a6VEqs4Mf🗓️ Issue Date: 2nd - 17th April ‘25 💵 Issue Size: ₹75 Cr + ₹75 Cr. 📝 Credit Rating: ICRA “A/Stable” 💰 Minimum Investment: https://t.co/iykfSwSiWq

5️⃣Let’s look at an example: A fund says it's “Actively Managed” but holds 48 of the 50 Nifty stocks Even if it performs well, it’s because Nifty went up—not the manager’s skill But you still pay high fees for “Active Management" That’s Index Hugging

Loss ho ya gain, dosti rahe evergreen!   [Nifty50, BSE, NSE, stock market, Investment, stock market investing] #SMC #SMCGlobal #MoneywiseBeWise #StockMarketIndia https://t.co/vKOPh4wUJ0 #SMC #SMCGlobal #MoneywiseBeWise #StockMarketIndia

3️⃣Why is this a BIG problem? You’re paying premium fees but getting no alpha (extra return). ⚠️3 Reasons Index Hugging hurts investors:

4️⃣How to spot Index Hugging? Here’s your checklist: ✔️Compare the portfolio with the index → If 80–90% stocks are the same = red flag ✔️Look at Active Share → <60% = probably hugging the index ✔️Check performance vs index → If it's similar, but fees are higher = stay away

2️⃣How Does It Work? Let’s say a fund manager is scared of underperforming the index. So instead of taking bold bets, they: 🔹Pick the same stocks in the same weight 🔹Stick close to the index 🔹Avoid risk

And that’s a wrap! If this helped you understand Mutual Funds better: 🔁 Retweet the first tweet

6️⃣So, what should YOU do? ✅If a fund acts like an index → Just buy a low-cost index fund ✅Want active management? → Choose funds with: 🔹High Active Share 🔹Bold stock picks 🔹Proven outperformance Don’t pay for drama when all you get is a copy-paste!

High Fees, No Benefit You're paying more, but not earning more. No Alpha The fund doesn't beat the market. It just matches it. False sense of active management It claims to be “active” but makes no bold moves.