Asset allocation is a crucial step in wealth creation. To obtain consistent returns, one should diversify towards Indian equities, global exposure, Gold, Real Estate, and Debt.
Empirical evidence depicts that post each of the three corrections measuring over 25 percent in the last 12 years, the Nifty retraced the decline completely within the following year.
Now that retail investors have got direct access to stocks, it makes sense for investors to diversify across geographies. Having said that, there might be the impulse to buy which is rising and then rue it later,
The longer-term gains are far more mundane, maybe if you look at the last 25-30 years history, we’re talking about maybe low to mid-teen kind of an annual return which could come from equity markets.
Agrawal is of the view that businesses that are able to grow in a sustained manner over medium to longterm say 3-5 years horizon tend to do vastly better than other businesses.
Investors should work with one basic assumption i.e. ‘what worked in the past might not work in the future,” says Kenneth Andrade, CIO, Old Bridge Capital Management.
Moneycontrol's Kshitij Anand talks to Viraj Mehta, MD, Equirus PMS
The range in which the Nifty is moving is 10400-10850 is the range, and a breakout or a breakdown will decide the next 500-point move on the Nifty.
We believe March -21 fair value to be in the range of 9600 – 11100, depending on how far the lockdowns get extended. As highlighted earlier, this does indicate that the worse is behind us.
What we have experienced in the past whenever India's market cap to GDP has fallen below 60%, which is where we are roughly at current levels. The next three five year returns have been extremely strong.
The market is sustaining above 9000 which is a positive sign for investors. As long as we sustain above this level, bulls should remain control, says Rusmik Oza of Kotak Securities.
Market could retest lower levels again, and then reverse the trend.
Markets would need severely bad data to retest 7500 levels on the Nifty. But, at the same time, we have seen good improvement in the market – a significant upside looks difficult.
A large part of the market movement will be dependent on what happens across the globe with respect to the easing of lockdown in the US, as well as the spread of COVID-19 cases.
Tune in to The Market Podcast with Kshitij Anand to find out what transpired in the markets this week.
Once we see the first signs of economic recovery, stock prices will react faster. Anyone who is investing in markets now should at least have a time frame of 3-5 years.
The allocation would also depend on net worth, cash flows as well as end goals for him which will decide the exact allocation strategy which can be tailor-made with the help of a professional financial advisor.
A follow-through signal doesn’t mean investors should go and buy with abandon. It just gives you the go-ahead to choose high-quality stocks with strong sales and EPS growth as they break out of their bases.
Investors should look at buying the companies where there is a strong business model, says Shailendra Kumar.
Catch the Dalal Street action on The Market Podcast with Kshitij Anand.
Tune in to The Market Podcast to find out all about the action on Dalal Street.
Host Jerome Anthony talks to CNBCTV18.com Editor Santosh Nair to find out what transpired in the stock market this past week.
Tune in to The Market Podcast with Santosh Nair and Anuj Singhal to find out what transpired in the market this week.
Moneycontrol’s Jerome Anthony gets in conversation with CNBC-TV18 Stocks Editor Anuj Singhal, who gives his view on four highly "trending" stocks.
Tune in to The Market Podcast with Moneycontrol Editor Santosh Nair and CNBC TV18 Stocks Editor Anuj Singhal to find out the D-Street action this past week.