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.
Esta historia es de la edición April 04, 2019 de Dalal Street Investment Journal.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición April 04, 2019 de Dalal Street Investment Journal.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
