Investors almost always take a pause when a big event is about to unfold. Shohini Nath along with Yogesh Supekar explore the investing opportunities in the current market environment ahead of the national elections, while the DSIJ research team recommends a ‘Model Portfolio’ to invest in.
Markets are showing signs of recovery and have actually taken many investors by surprise. The recent turnaround in investor sentiment has surely enthused investors, making them wonder if 2019 is indeed going to be a year of wealth creation.
The recent recovery has pushed the stock prices higher from their lows. But what is interesting to note here is that the FIIs have pumped in a lot more money than the mutual funds. This is in stark contrast to 2018, where the domestic inflows dominated the markets. In all likelihood, the FIIs inflows into the Indian markets will continue to remain strong.
Quite a few experts believe that the money inflows from the FIIs will not be a problem (at least for 2019), but it is the domestic inflows that could present risk for the markets going forward. The recent two months have seen no growth in the SIP investments, even though the SIP inflows are healthy at about Rs 8000 crore. The MF industry has seen some redemption pressure and a drop in lump sum investments.
The markets have tested investors' patience in the past 18 months. The returns, even for SIP investments, have been negative for several equity MF investors. Says Amol Dandawate, who is a mutual fund investor, “My SIP investments have now turned positive, after being in the negative territory for almost eight months. It is a feel-good factor to see the investment returns turn positive.”
The recent rally in the broader markets can be attributed to the gush of liquidity supporting the markets. The risk-on mood in the global markets is supporting the current rally in the emerging markets. The financial sector, yet again, has been the favorite of the institutional investors. One of the reasons for the current market rally is that it is factoring in a Modi-led NDA victory in the upcoming elections. Also, the markets are factoring in a steady double-digit earnings growth in 2019.
This story is from the April 04, 2019 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the April 04, 2019 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Does AUM Size Matter?
Investors generally focus on a fund's past returns. They think that a larger fund is better. On the flip side, some investors raise concerns about whether a fund can sustain its strong performance after growing to a substantial size. What is the reality? Rakesh Deshmukh takes a closer look at the scenario
Base Rate Investing: The Smart Investor's Secret
Base rate investing offers a distinct advantage to investors encouraging them to look beyond the noise and focus on underlying fundamentals and longterm trends. The article explains how by understanding and applying this strategy effectively, you can make informed investment decisions and potentially outperform the market over time
Back To The 'All is Well' Feeling
Domestic indices hit record highs on the back of robust performance in real estate, power, metals and automotive sectors
Should Commodity Funds Be Part Of Your Portfolio?
Commodities serve as tangible assets that offer investors a means to engage with the real economy and provide a degree of insulation from financial system disruptions. In this scenario, multi-asset allocation funds represent a more efficient vehicle for commodity exposure compared to hybrid schemes. Here are the details
Asset Allocation & Diversification
Remember, when you diversify your investments, you minimise the chances of suffering from what is known as 'single security risk', or the risk that your investment will fluctuate widely in value with the price of one holding.
Ten Commandments of Wealth Creation
Financial Planning
Gold Glitters Amid a Narrow Range Trading
Over the last two weeks, the commodities market displayed cautious activity with investors trading within narrow margins, eagerly awaiting pivotal economic data and insights from Federal Reserve officials.
Can Global Equities Sustain the February Momentum?
Even though the markets touched new highs in February, they did experience some challenges, notably in the bond sector, which faced difficulties due to an uptick in interest rates.
"Future outlook of railways and railway wagons industry appears promising"
Umesh Chowdhary Vice Chairman & Managing Director Titagarh Rail Systems Limited
Metals and Mining: Poised For A Steely Performance
While investors were drawn to the impressive rally in metal stocks, the recent interim budget indirectly bolstered the metals industry with substantial announcements in infrastructure, real estate, defence and railway sectors, which are known for their extensive use of metals. Mandar Wagh explores the future prospects of the industry, analysing financial performance, risks and growth triggers
