Looking closely, we find that India’s inflation is well controlled, ATH FX reserves have acted well as a shock absorber against volatility, and our GDP growth expectations is one the highest in the world!
Added to that India’s weight in the MSCI Emerging Market index has increased substantially in the past 2 years showing signs of investor confidence, while other prominent emerging country weights have been dropping.
In times of slowdown, currency reflects the true strength of macro fundamentals. Japanese yen, Euro, Swiss franc, and British Pound have depreciated much more than the rupee making the rupee one of the best performing in the world.
“How can I safeguard myself from a sharp correction?” For most investors, this top-of-mind question is bothering them. Yet, nobody wants to sell. Everyone definitely wants to participate in any potential upside. (2/n)
#Investors #RiskManagement
This is where a sound investment strategy can certainly help. Risk mitigation can be done in every portfolio. Portfolio strategy can also significantly reduce risks by choosing safer options like multi-asset strategies. (3/n)
India has been increasingly exploring equity as an asset class. It is heartening to see inflows from domestic investors and DIIs beat the dominant FIIs.
(1/n)
#Equity #AssetClass #Investor #FII
For a retail investor, Mutual Funds (MFs) are the suited and preferred way to get a hang of equity assets. Passive funds have become popular over the recent years.
(2/n)
#RetailInvestor #MutualFund #Equity
Active Fund Managers are backed by a research team that allows them to make well-informed decisions based on market opportunities.
Passive funds, however, follow a #benchmarkindex and require no fund manager or research team, thus reducing their cost.
Changing asset allocation is a sure shot way of ensuring risk mitigation in an investor's portfolio. But if you are already owning a portfolio of equity that you built assiduously, you are posed with a peculiar problem. (2/n)
#AssetAllocation #Investor
Should you sell your equity portfolio down as part of your risk mitigation? (3/n)
The markets seem to have hit a new all-time high and turned. Clearly, the index highs need more legs to stand on and still need tremendous firepower to rise. (2/n)
#markets #personalfinance
With at least three major index constituents, private banks, information technology and pharma struggling to hold onto their recent valuations, it becomes a steeper climb for the index from here. (3/n)
The markets have intense spells when politics prevails over everything else in directing sentiment. Closer to every general election, this trend returns to haunt the markets. (2/n)
But, the ability of politics to drive sentiment is influenced by how much the outcome of the election will drive change. If change is likely to be significant and for the better, the markets can run up ahead of elections. (3/n)
The markets go up too quickly when people are least prepared for it. That setting is perfect for us to get that fear of missing out. We call it the FOMO feeling. (2/n)