Thursday, 17 November 2016

ETFs' impact on markets: What does Mihir Kapadia say?

Yes, dear reader(s), it's the Thursday afternoon PR email, back by popular demand, just as I promised. 'Don't forget you demanded this shit, blog fans!' Okay, thank you, Voice. I don't need your input. / Right. Mihir Kapadia, CEO and founder of Sun Global Investments, is an expert. 'Great!' So whatever he says is going to be interesting, if not downright fascinating.

"Some investors in the market still don't necessarily understand the huge advantages ETFs can offer investors: the bottom line is that ETFs gives investors access to an index. In response to those not convinced by ETFs, I would reiterate that their attraction is that they offer different investors different solutions to different investor types - if an investor is looking to allocate funds to the Indian growth story then perhaps the Sun Global Zyfin Indian Fixed Income ETF will give the necessary exposure to express this investment decision. However if a trader wanting to immediately express a view on Brexit, employment numbers or any other price moving news, that trader is more likely to buy or sell the FTSE100 ETF rather than buy or sell individual stocks."

Of course, our Mihar is the big man at Sun Global. 'Ha!' He's going to be crazy about the Sun Global Zyfin Indian Fixed Income ETF, ain't he? / Anyway, let's continue -

"Why? Because the ETF immediately delivers exposure, long or short, to 100 stocks, otherwise the trader has to type in 100 buy or 100 sell orders in the correct stock weightings and execute all 100 trades at the same time to achieve the same result as simply using an ETF. So the ETF can be used as an asset allocation tool or a trading tool, but blaming the ETF for its simplicity of use and ease of use is unfair when in fact it is successfully delivering cheap and liquid access to what the investor wants."

All right, Mihar. Fair enough. / 'What about the phone call, boss?' What bloody phone call?! 'Natasha said you could have a phone call.' Oh, the PR girl. What, with her, like? 'No, with Mr Kapadia.' Uh, no thanks. I got nothing against the guy, but he's not a lovely Natasha, is he? 'Er, how do you know this one is lovely?' Because I've never met a Natasha that wasn't.

Oh, about Sun Global Investments ...

Sun Global Investments Ltd. is an international financial services firm based in London, providing a full scope of services to institutional investors, corporate companies, family offices and high net worth individuals. Established in 2008, in the midst of turmoil in the financial services industry, Sun Global identified lucrative investment opportunities in emerging market corridors and has since established itself as a trusted boutique firm for investors looking to take advantage of these versatile markets.

'Nice.' Yeah. / Well, I've done my duty for another week. 'Now you can rest.' Ha! I got my guitar to play, son. I'm going to be rockin' in the free world all weekend. There's no rest for the wicked.

Laters, everyone. I mean, real laters, until Monday. 'Bye!'