AMIT MARATHE
Co-Founder, Wise Turtle LLP
India's large-cap stock index has doubled in the past 4 years. The EPS (earnings per share) has also gone up in tandem. Supported by lower leverage and improved earnings growth, the mid and small-cap indices have also rallied in "fast and furious" mode over the past 12 months.
In addition to earnings growth, the gush of continuous domestic liquidity, stable macros, political stability, government capex, better and improved performance of public sector companies, continuity of policies and reforms has led to a strong bull run in the Indian equity markets.
However, after a 4-year dream run, some segments of the market have become over heated. It is pertinent to pay attention to the below quote on risk given the pace of the rally.
"Actual risk is highest when the perception of risk is lowest and vice versa" As the markets reach new all-time highs, it is crucial for investors to reassess their current asset allocation. In most investment portfolio's the percentage of equity allocation has gone up. This can be attributed to both return contribution as well as fresh inflows which tend to follow asset classes with the best returns. The markets tend to suck in all excess liquidity during good times.
The Role of Asset Allocation in Investing
Asset allocation is more than just a buzzword in the world of investing. It is a key strategy that determines the long-term performance of an investment portfolio. While market timing and fund/security selection are often highlighted as drivers of success, the reality is that asset allocation plays a far more crucial role in achieving financial goals and mitigating portfolio volatility.
Role of different asset classes in Investments:
この記事は Outlook Money の September 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Outlook Money の September 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
Stay Ahead Of AI-Powered Cyber Fraud
AI has become an integral part of our lives, right from customer service at banks to insurance claims. But it has now become a powerful arsenal for the fraudsters too who are increasingly using AI to scam individuals and corporations alike to commit fraud. The key is to stay vigilant
Travelling To Europe? Pack In The Essential Covers
Smart travellers must know that insurance is a must-have. From essential health coverage to theft protection and trip interruptions, know what you need for a worry-free Europe trip
How To Spend Wisely This Year-End
We all spend during the year-end. But the trick is not to overspend or borrow, either from friends, or your own investment, to fund your indulgence. Maintaining balance is the key
Travel Now Pay Later (TNPL)
Travel now, pay later (TNPL) is a close cousin of the more popular buy now, pay later (BNPL) schemes.
12 Books Devina Mehra Loved Reading In 2024
Listing books of her choice, among the ones she reads during the year, is ace investor Devina Mehra's favourite year-end activity. She says it's a daunting task to pick around 12 books from a list of 50.
Here's How To Avail Of Ayushman Bharat Yojana
Launched in 2018, the Ayushman Bharat Yojana aimed to provide health coverage to targeted benefi ciaries from the Socio-Economic Caste Census (SECC) 2011, based on deprivation and occupational criteria.
'Focus On The Business, Assess If You Want To Be A Partner For 10-20 Years'
Professor Sanjay Bakshi, a value investor, behavioural economist and adjunct professor at Flame University, Pune, gives his unique perspective on how to choose a stock, in an interview with Nidhi Sinha, editor, Outlook Money, as part of the Wealth Wizards series. He also shares his learnings from role models Warren Buffett, Charlie Munger, Benjamin Graham and others, and how being a chartered accountant, economist, investor and teacher make him into what he is today. Edited excerpts from the interview
The New Trump Card For IT, Pharma
Donald Trump has been re-elected as the 47th President of the US after a gap of four years. Here's how it will affect the Indian markets and how it will benefit sectors such as IT, pharma, export-oriented sectors and others
European Sojourn
Tight on budget? Dump the popular European destinations for the little-known wonders that are equally attractive
Gold ETFs And FoFs
While Indians love to invest in physical gold, even mutual funds offer the option, but in paper format.