Good Equity Investment in Year 2020
For common investors, the year 2019 was broadly a painful year filled mostly with what most experts agree is bad economic news.
Though Nifty has delivered 14% of Absolute return in 2019, we had the lending industry reeling under an onslaught of negative discoveries as the ILFS and DHFL credit crises unfolded. Many debt funds had their reputations were also questioned in 2019.
Over the past two years, market participants have undergone significant pain. The market has been polarized due to a narrow rally limited to a handful of largecap stocks while broader market has not performed.
Having said everything bad, the investors who participated in best performing Large cap fund have enjoyed 16% of Return in 2019. ( It’s not that bad as we say though )
Equity Markets and its Returns
Interestingly, the stock market, apart from a few hiccups managed to reach new highs and stay there. This ended up confusing many experts who wrote a lot on how could markets keep rising despite the spate of negative news.
Many Investment Banking and Research Agencies estimate for Sensex index in Dec 2020 is 45000.
Year 2020 is a year of Divergence, Divergence with Market Capitalisation, GDP VS Index and finally Emerging Markets Vs Developed Market Indices.
Positive catalysts for Year 2020 are Govt Reforms, Ample liquidity, Earnings Recovery, Settling down of US and China Phase 1 Trade Deals.
Hence the best investment options and the themes for Year 2020 are
- Asset Allocation themes to address near term volatility
- MidCap, Small Cap and Value Funds – After underperformance and attractive Valuations
- Accural Debt Funds – As Fiscal and Monetary Stimulus playing a supportive role.
- Constructive of Equities through SIP’s and STP’s
You as an investor can only do one reasonable thing. Contact your Wealth Consultant and Invest for the long term in mutual funds that select the best companies of today, and the future, for you.
To invest in Direct Equities and Mutual Funds reach out to me @ 9841058689.
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