In this webinar, we talk about Govt stimulus that failed to revive the markets expectation for the next year, equity portfolio performance and Nippon India Large-cap(Reliance Large-cap), A small review. Intro to BTT Stylebox.
Reliance Mutual Fund becomes history after 25 years of managing people’s money and giving more than 100 times Return on Investment on their portfolio in 20 years’ time. Now, Reliance Mutual Fund has got taken over by a joint venture partner Nippon Life, Japan.
Check out the review of Nippon India Large Cap Fund with trend exposure details and rolling returns.
All kinds of stimulus by the government is still not helping markets get into a bull rally. Markets waiting for the real push in the form of profit numbers from companies, which should take 3 to 3 quarters from now. Gains made from tax cuts, have begun to reach consumers, next is volume growth and add to more profits. Businesses are not having growth because of a lack of innovation. Auto sales down not because people don’t have cash, there is no Wow! factor to pull people to buy cars. Innovation crunch has hit all the segments of the market, only those who have given new experience to their customers are growing their business.
This kind of growth stories is always found in the markets, identify them and invest to make big returns on your savings.
Surprise Tax cut on corporates turns the market from Bear to Bull. Yet, this rally will face challenges to sustain. This is India’s biggest reform in the decade which changed the Global view on the way of doing business in India. With the approx. amount of 1.45 Lakh Crores moving from Government to the corporate sector, we may see much better use of this money in the hands of the corporates. Now is the time to wait and see who will benefit from this exchange and how will this transform the Indian economy!
Market going up, not a sustainable up move due to low buying power. FPI taxes & Bank mergers propelled market to go up. 5% GDP was brushed off, which is a sign that market has bottomed. Expectation on GST cut, Auto and Biscuit segments where cut is expected while there will not be any positive change due to this. Present correction which is likely to stay for another year or so is a very good time for investing, to pick up stocks at a bargain. It is time to increase SIP’s as well as bulk investments. ITC is now in a attractive buy position for long term investors. Dividend yield on ITC stock is about 2.25%, similar to rental income. Whereas growth is expected to be around 400% in the next 10 years.
10 PSB’s getting reduced to 4, synergies that this big merger will create. Lesser competition for the bigger banks now and also the advantage of cutting cost due to branch closures are being a big positive for the banks. GDP at 5%, a 6 year low, in fact, brings opportunities with the next big jump that is possible with every fall. IN 2009, GDP grew at less than 1%, the following year it moved up to 12.50% and stock markets gave 100% growth in 1 year. One more such event is unfolding, time to invest.
SIP returns can be negative for the first 2 to 3 years, give your investments time to work, say 5 or more years. There is no possibility of negative returns from SIP. India is in the cusp of a very big upside for both its economy and the markets. Do not disturb your SIP’s, stay invested, you will have very big gains to be made.
A broad market index to guage the pulse of the market. It will give the strength of the market on both bullish and bearish sides. It helps us decide on when to add to our investments & when to keep off from the markets. Tactical decisions like when it is right time to trade the markets for high probability winning can be had from this index.