While the equities did well, the bitcoin surge hogged a lot of investors’ attention.
Investors will remember CY2017 for the booming stock markets and the spike in bitcoin prices. While bitcoin prices fell in last couple of days, it will be interesting to see how far Indian equities go. The bellwether index of India — CNX Nifty closed at 10493, after touching 10500 in intraday trade on Friday. Year-to-date returns for the index stand at 30 percent, marking it one of the better years in the past decade.
While the equities did well, the bitcoin surge hogged a lot of investors’ attention. There was a fear that cryptocurrencies will replace the investment demand for gold in alternative space. However, that may not be the case. Experts opine that the gold should come out unscathed. Rather, the gold should gain if the cryptocurrencies remain volatile as they recorded a 30 percent fall from its record high. To understand why gold should be preferred over these cryptocurrencies, read this story.
While you may have missed the bitcoin bus, Indian stock markets continue to offer a lot of investment opportunities. If you are worried about the high valuation stocks, you can use these tips to ensure that you do not take unnecessary risks with your capital while investing in stocks and equity mutual funds.
If you are a believer in asset allocation and have been allocating a small proportion of your investment to gold, you are staring at a very low return in comparison to stocks. Over last one year, gold funds gave only 2 percent returns. But do not lose heart, gold may soon see better times. If you want to know how gold is expected to fare in CY2018, do click here.