Nifty50 is up nearly 10,000 points from its March 2020 low – what should mutual fund investors do now?
About a year ago, after the outbreak of the Covid19 pandemic, pessimism appeared throughout the stock market, and the stock prices of several major companies fell to historical lows. The leading Nifty 50 and Sensex indexes continued to fall, and pessimism spread throughout the market. After the rise in global stock markets, there was a sharp rebound, all thanks to the Fed’s injection of stimulus measures to keep the economic engine running.
Since its March 2020 low on March 24, when the Nifty 50 hit a low of 7511.10, the index has risen by nearly 10,000 points and has risen by nearly 133% during this period. On Monday, September 6, 2021, the Nifty 50 was trading at approximately 17,350, which is lower than 150 points, which rose 10,000 points in less than 18 months.
But is it moving tall or the market? For those with objectives in the next 35 years, they should initiate the resistance process by transferring shares funds to a volatile debt fund. However, for many other people, there is also a Goome-fearofmissingsingOut game factor, and the expansion of new funds at these levels may not be comfortable with all investors. Aditya Khemani, Fund Manager, Itilla Al Oswal AMC, in the email interview on Faith Online, clear the air and progress investors. EXTRACTS:
Existing investors from self-owner investors should be approaching the market now?
The stock market is finally reflected in the economy, and if the economy is working well, the market will work well. During the last 45 years, the demonstration, the credit crisis of IL & FS, the short-term impact of the implementation of GST, the final impact in the short term and the worst expected growth foreseen, that growth is expected for several years is reasonable. You must take a range that you must compensate for the lost terrain. Therefore, we seem to be the beginning of a powerful period of income for corporate India. In general, corporate revenues for GDP ratios that are in the 5% range currently indicate that it is at the bottom of the circulation in terms of income.
A person is functioning well for the growth of corporate training. Market income must be lower than performance growth, since part of the greatest growth in income has already established for evaluation. Due to
, existing investors should be invigoed without worrying about everyday volatility.
What are the new investors and the lower part waiting for the market to crash?
It is natural for those who want to earn money to the market to be afraid when looking at the market exercise of last year’s fund. But my request to them is to look at the data otherwise.
In the past three years, Nifty has risen 46%, BSE Midcap has risen 41%, and BSE Smallcap has risen 56%. If you annualize these, its annualized rate of return is 1316%, which seems more sensible to humans.
Looking to the future, as I mentioned above, we seem to be at the beginning of a solid multi-year profit cycle, so the market should perform well in the near future, although there will be volatility with the influence of sentiment. Very important in the short-term market. move.
So we should not waste our previous energy/energy on things beyond our control. Focus on your financial goals and take steps to achieve them.
Stock fund investors generally tend to move between medium and large market sectors. How should your portfolio be positioned?
Should I invest in large-cap stocks or mid-cap stocks is a bigger question. It is often difficult to grasp who will do the best cycle, and most professionals cannot do this. In our analysis, we concluded that the 50:50 allocation to large and mid-cap stocks may be the best allocation for long-term investors. Therefore, investors can position their investment portfolio accordingly.
What must the Motilal Oswal large and medium-sized funds offer investors when the market is at historical highs? We believe that
Motilal Oswal large and medium funds have many differences. First of all, we try to keep the configuration of large, medium and small caps at 50:50. This configuration maximizes long-term returns while controlling risks, because the large cap provides stability and the small and medium caps provide greater growth.
Second, the fund’s motto is “the leader of a fund today and tomorrow.” We believe that in most industries, the industry is consolidating, so leaders are getting stronger and taking market share from weaker industries.
Therefore, 50% of the allocation has been allocated to the company that ranks first in your industry, and 87% of the allocation has been allocated to the top 5 companies in your industry. Therefore, we believe that a portfolio of large assignments to leaders is a unique proposition.
Third, in accordance with our vision of strong economic growth in the next 23 years, we have a greater inclination towards economic recovery, and for this we have allocated around 70% of the real estate ecosystem and consumer discretion. Therefore, in general, it is correct to label a multi-layered portfolio and allocate it from the bottom up to the companies that are the leaders in their market segments.