Bajaj started as a commodity analyst at JM Financial, but left soon after to become a full-time trader. He traded not only stocks, but also commodities and currencies. His company iRageCapital, launched in 2009, was among the first companies to introduce algo trading in India. Currently, Kredent InfoEdge has three business tiers – StockEdge, Elearnmarkets, and StockEdge Club.

“We have created an ecosystem that can serve as a complete journey for an investor: from learning (via e-markets), to research and data analysis (via StockEdge), to collaboration (via StockEdge Social) and now also transactions. Investors can access their dematerialized accounts through our StockEdge platform,” he told Mint.

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A total of 4 million users interacted with Kredent InfoEdge across the three companies, according to Bajaj. And among them, 150,000 users have opted for paid services. The company reported 22 million in revenue in FY22 compared to 14 crore in FY21.

Bajaj hardly does any trading now. “Between 2006 and 2013, I was extremely active in trading, from morning to midnight. Later, I switched to passive trading. Unconsciously, I continue to follow the markets all day although I am no longer an intraday trader active,” says Bajaj.

Passive trading involves holding positions for medium to long term fluctuations and not participating in small movements in the market. “My goal is usually to get 10-25% moves in a stock,” he says.

Momentum versus Core

Bajaj has been “super bullish” on stocks. Its investments include a core portfolio related to value and growth investing and a dynamic portfolio, also known as a satellite portfolio. the Nifty is trading above 200-DMA (daily moving average),” Bajaj says. quality in which Bajaj has Systematic Investment Plans (SIPs).He books profits from his dynamic portfolio and sits on cash when the market is in a downtrend.About 30% of his overall portfolio is in cash in the current market scenario.

Bajaj’s equity portfolio also includes mutual funds (MF). These could be Nifty index funds or exchange-traded funds (ETFs), which he says are the best products in the MF industry. “About 15-20% of my equity portfolio is invested in money market funds, which are part of my core portfolio,” he says.

Bajaj has diversified its investments in stocks (30%), debt (10%), gold (10%), real estate (20%) and cash (30%). If the market had been buoyant, the 30% of cash would also have been invested in equities. “Momentum will only come to the picture when I can spot trends in the momentum market. So I’m sitting on a lot of money right now.”

Bajaj’s equity portfolio has remained stable over the past year with a compound annual growth rate of 20%.

Like many Indian families, Bajaj holds a fair amount of physical gold. He also regularly accumulates paper gold.

But these are not gold ETFs, gold mutual funds or even gold sovereign bonds. “We are a member of Multi Commodity Exchange (MCX). So, I take MCX contracts to take a position on gold. It helps me get a better return on capital because I don’t have to pay upfront. Initial capital deployment is lower thanks to a margin requirement of only 15%.

This is, however, a sophisticated strategy that most retail investors should not attempt to implement. Bajaj has been doing this for 4-5 years on a weekly basis. Current prices are 20 to 25% higher than its average purchase cost. However, his investment in gold generated a CAGR of 4-5%. “For me, gold is more of a hedge than an investment.”

As for debt, he only prefers cash. “For me, debt funds are just for parking short-term money. I need money to deploy in the market. I don’t take interest rate risk by investing in debt funds.

Whatever real estate he owns is for his own use. “My residence and my office are my real estate. I don’t see it as an investment option.”

Does Bajaj do goal-based planning? “I’ve mentally mapped financial goals, but I’ve reached a state where I no longer need to do it on an Excel sheet or any other document,” he says.

Bajaj has a huge following on social media platforms YouTube, LinkedIn and Twitter. He started face-to-face interviews with market experts in 2016 for elearnmarkets. He launched a second channel in November 2020. These two channels are very popular with 800,000 and 600,000 subscribers respectively. Yet, the one thing that is not going well for Bajaj is the subscription business. “Subscription revenue has not been sufficient. I only see that happening if the subscription economy picks up speed in India,” he says.

He holds a research analyst license under StockEdge but plans to apply for a RIA (registered investment adviser) license so he can offer portfolio-level advice to investors.

Bajaj has a message for traders who turn to him for advice: “Don’t be in a rush. Trading is an occupation that can be pursued until your last breath. The most important thing is to stay in the market.”

Although he stays away from the financial capital, Bajaj says he is not interested in moving to Mumbai. He is happy to interact with Dalal Street from the comfort of his home, City of Joy, Kolkata.

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