Its Diwali yet again! This year has been a roller coaster ride with very high volatility across asset classes. Discipline and focus will help us ride the volatility. Last year, as we had predicted, nifty made a high 6200 and consequently a low of 5100.
For a person who had invested in the nifty in 2008 has generated no return at all, even most mutual funds are under water since most mid cap and small cap stocks are closer to their yearly lows than highs, going forward also we expect the nifty to consolidate with elections looming and economy still to pick up. Investors who have been able to invest in specific stocks with strict discipline are able to generate above average returns. Hence, this year we are going to be more stock specific with no particular view on the nifty.
Therefore, we should invest 50 percent of our portfolio in low risk tax free bonds and the remaining 50 percent in high risk stocks and commodities.
Our view on gold remains the same; at least 10 percent of your portfolio should be invested in gold as insurance against weak government policies and rising dollar.
The interest rate scenario is not very clear with RBI still raising rates due to high inflation but we could be closer to a top in rates, hence some money should be invested in long term bonds.
Have a Happy & Prosperous Diwali !!!
For a person who had invested in the nifty in 2008 has generated no return at all, even most mutual funds are under water since most mid cap and small cap stocks are closer to their yearly lows than highs, going forward also we expect the nifty to consolidate with elections looming and economy still to pick up. Investors who have been able to invest in specific stocks with strict discipline are able to generate above average returns. Hence, this year we are going to be more stock specific with no particular view on the nifty.
Therefore, we should invest 50 percent of our portfolio in low risk tax free bonds and the remaining 50 percent in high risk stocks and commodities.
Our view on gold remains the same; at least 10 percent of your portfolio should be invested in gold as insurance against weak government policies and rising dollar.
The interest rate scenario is not very clear with RBI still raising rates due to high inflation but we could be closer to a top in rates, hence some money should be invested in long term bonds.
Have a Happy & Prosperous Diwali !!!
No comments:
Post a Comment