Mutual Funds Portfolio
Quarterly update: January 2020
This space shall be updated every quarter with performance of mutual funds & suggestions about portfolio changes. You also need to subscribe to our newsletter to keep getting other investing articles via emails.
This space shall be updated every quarter with performance of mutual funds & suggestions about portfolio changes. You also need to subscribe to our newsletter to keep getting other investing articles via emails.
Portfolio Performance Review
Here is a review of the mutual funds we track & their performance updates. Pls invest according to your chosen strategy from the investment portfolio advice pack. Our suggested funds are marked in bold letters. At any time, pls don't invest in more than 2 to 3 funds under each category (a) Large cap funds (b) Multi cap funds, ELSS funds (c) Mid cap, Small cap & value funds & (d) Debt funds. Restrict yourself to 2 funds per category for a portfolio below Rs 2 crores. Restrict total count to 8 funds at the maximum.
Benchmark Indices Performance
SIP Trends & Other Indicators
SIP inflows stayed steady which is helping the markets retain critical levels. Also indicates that retail investors are finally able to understand the importance of staying invested in the thick & thin or markets.
This is clearly in contrast to the ever fluctuating one time flows driven by short term market euphoria. This almost never ends well as we see from high inflows in early 2018.
Final Thoughts
Are you worried about the slowdown ? You should not. More so when you are on SIP mode. This is the time when a SIP pays off. I would like to draw you attention to the following points:
However, there are some positives that give hope. There is a new government at the center that has returned with a stronger mandate. So bold decisions are expected. There is an underlying theme that this government follows. It likes to manage distractions & also controls the government machinery better than its predecessors. Now this may seem like a bad press to some but is largely good for the economy. Our country is full of contradictions & if we don’t have powerful center, it may not be good for the economy. So we are on the right track (think China) & certainly the best possible under current circumstances. Additionally the inflation is under control on a sustainable basis & that works for the economy in the long run. The downside (actually not so much) is that one should adjust the scale & see 12% returns as great. The days of 20% YoY growth may not be as frequent unless inflation goes out of control. And we don't want that. Recent decision on steep cut for corporate tax rates & other incentives announced for banking, reality & infra sectors, the above hypothesis is proving to be right. This government is listening & that is all that matters. So stay along the course & keep those SIPs going. Happy investing.
- As you see in historical returns, every year is not a lottery. 2014 & 2017 have shown that equity behaves in a non linear fashion. Since market discounts the future today, the expectation get priced in fairly quickly. Post 2017, we were expecting to see a few dull years, more so as the earnings growth has still not picked up. But this is where you get your money's worth. You buy cheaper units in funds.
- Key sectors on Indian economy have hit an air pocket. With financial services & autos in a slowdown, or so it appears, there may be some downward pressure. Again, this is not something that people knew & we are still discovering the depth of it. But few earlier warnings from my side were very clear about the heating up of certain stocks. Now barring few Nifty stocks, overall market has seen a correction & we are not done yet.
However, there are some positives that give hope. There is a new government at the center that has returned with a stronger mandate. So bold decisions are expected. There is an underlying theme that this government follows. It likes to manage distractions & also controls the government machinery better than its predecessors. Now this may seem like a bad press to some but is largely good for the economy. Our country is full of contradictions & if we don’t have powerful center, it may not be good for the economy. So we are on the right track (think China) & certainly the best possible under current circumstances. Additionally the inflation is under control on a sustainable basis & that works for the economy in the long run. The downside (actually not so much) is that one should adjust the scale & see 12% returns as great. The days of 20% YoY growth may not be as frequent unless inflation goes out of control. And we don't want that. Recent decision on steep cut for corporate tax rates & other incentives announced for banking, reality & infra sectors, the above hypothesis is proving to be right. This government is listening & that is all that matters. So stay along the course & keep those SIPs going. Happy investing.