But those who are investing now (at better valuations), those 2200 points jump will a) deliver 13.6% in the same period as those invested at peaks and b) be far ahead of those investors who have belived in #BuyAtAnyPrice (#BAAP) if markets go further up from there as well
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TIME TO ENTER & NOT EXIT FROM EQUITY at this juncture
After yesterday's correction, NIFTY PE & PB have gone down for our Algo to show one can invest 60% in Equity. In such a scenario, we would recommend out of ₹100, ₹60 can now be invested in Equity and balance 40% in Liquid.
We then do value STP of 3X over next few months till markets remain in Yellow Zone. If markets collapse to Green Zone, balance amount in liquid can be deployed in Equity immediately.
What is 3X?
60 lacs/60 mths = 1 lac is 1X
3X in this case is 3 lacs
But please remember, that after 60% investment in Equity if markets correct, for some time that portion will show negative returns for a short while. That should not perturb us as these investments would have been done at reasonable valuation Zone.
When interest rates go up, price of underlying securities come down and vice versa. There is inverse correlation to interest rates and price of bonds
At the peak of interest rates, price of bonds should have corrected immensely. If we compare this in Equity parlance: when should one invest? When markets are down (cheap valuations) or when up (expensive valuations)?
Lot of #AMCs come up with different ideas, themes, sectors.
These are demands from #Investors as they have done well in recent past.
AMCs are manufacturers & will offer what is in demand.
Final choice to say YES or NO lies entirely with Investors based on their #NEEDs
What should investors choose and what should they ignore. A point by point guide on where and why to invest in certain #themes, #MarketCap bias, #Sectors, #AssetClasses etc.
What should be criteria for these selections and what should guide them to resist from Investing?
Post that, markets have been #volatile with downward bias
Results of Smart Investing v/s Buy & Hold under all Market Caps is for all to see - with 1) lower volatility, 2) beating results of Buy & Hold by big margins
#SmartInvesting switched to Equity in Mar 20 after downside protection and switched back to DAAF by Jul 20
3) Values under Buy & Hold have gone down substantially from Oct 2021 to Feb 2022 v/s values going down marginally under Smart Investing due to being in #DAAF, 4) Smart Investing portfolios better placed at current juncture to take advantage of market #volatility v/s Buy & Hold
Congratulations to @nsitharaman and @PMOIndia to guide our country thru this #pandemic period. You have avoided excesses of many countries during this period. Thanks to that #India is touted as the next preferred #investment destination.
It is dream of our Hon #PMModi to reach $5 trln economy very soon. For that, besides Govt spending, you will need help from citizens to save, invest and channel the same to productive use through investment vehicles like Mutual Funds.
Our #MutualFund Industry has grown from 25 lac crs to currently 37 lac crs and likely to touch 100 lac crs.