7 All-Weather Equity Portfolio For 2022

Last two year we saw the equity market globally generating exceptional returns on the back of liquidity provided by fiscal and monetary stimulus. year 2022 will be return to normalisation on both policy front and returns from equity hence moderate your return expectation for 2022.

Year 2022: Moderate your return expectation

Those of us who have spent more than 10 years in the equity market may see the stock market returns in 2021 in resemblance of what we saw in year 2010. It was also the second year of emerging from a deep stock market correction in year 2008. Year 2009 was great year of equity return and even 2010 till October equity market gave phenomenal return. Even in current phase, equity market recovered from the deep correction of first quarter of 2020 generated good returns in 2020 and exceptional return in year 2021. While past performance does not necessarily predict future results, being an active equity investor does require understanding historical moves.

Now in 2022, amid hope that the current variant of coronavirus will soon become endemic from pandemic as vaccines are used widely baring few exceptions, investors may find it tougher to generate the kind of stock market returns that they saw last year.

A sense of return can be gauged from the performance of listed company. Among 3000 odd actively traded stocks on BSE, in year 2021 we saw more than 50 stocks going up by 10 times, or 1000 per cent. The best performing stock for 2021 was Flomic Global Logistics, which moved up from ₹1.95 at the start of the year to ₹188.15 at the end of the year, moving up by almost 10 times. So a one lakh investment at the start of the year would have turned whopping one crore by the end of the year.

In terms of sector, though IT remained in the limelight, what steals the show was Textile Company that on an average generated return of 253 per cent. IT came in at third place.