Amit Mamgain’s Post

Our 2024 investment strategy of “Sailing with the Wind”, where we expected equity markets to ride the growth momentum, has performed well in H1 2024 with the Nifty index and midcap/smallcap indices up over 10% and 20% respectively. Going into H2 2024, we expect economic growth and corporate earnings delivery pace to normalise, but stay above trend and ahead of major peers. Government continuity offers policy stability, but a reduced majority is likely to see a broadening of policy focus. We see this a potential inflection point and a good time for investors to adapt to these shifting winds through a more diversified asset allocation given a more balanced risk-reward across equity and bonds. Within equities, we are overweight large-caps and within bonds, overweight medium and long-maturity bonds. Opportunistic allocations favor government policy beneficiaries - manufacturing and infrastructure and a barbell sector strategy. We prefer corporate bonds on cyclically high spreads For more please read our H2 India Market Outlook report #marketoutlook #investmentstrategy #assetallocation #equities #bonds #SCwealthselect

How do you protect your investment portfolio? 🛡 India has realised the wealth creation potential of stock market and it shows. In May 2024, more than ₹35,000 crore were invested in equity mutual funds - the highest monthly inflow ever. But my guess is most of the recent stock market participants have very equity-heavy investment portfolios (more than 80% allocation to equity). While this works brilliantly well during bull runs (for example - the last 4 years), it can backfire severely when the markets experience high volatility (for example - early 2020). So, it is absolutely imperative that investors protect their investment portfolios with some allocation to debt and gold. These assets can offer downside protection to your portfolio during volatile times. When it comes to debt investment options, fixed deposits and debt mutual funds clearly stand out. While both have their merits, fixed deposits look more lucrative - both from a feature perspective as well as return perspective today. Here's an infographic that compares the two... #fixeddeposits #investing #mutualfunds

What would you call an asset whose FY 21-22 annual turnover is almost the same as its Q1 turnover for FY 24-25? That’s the story of ETFs. Not just in equities, but also in gold, debt, and other asset classes, ETFs are becoming a go-to investment. With quarterly trading volumes nearing ₹85,633 Crores, let us understand why people are going gaga over this asset. India has traditionally been a saver economy with many investing in FDs. But as more people explore equities, two major problems emerge: Risk and High cost. ETFs help to solve both, offering low cost, diversified assets that generates benchmark returns. This asset is also suitable for those with smaller saving as minimum investment requirement is low in ETFs. Do I invest in ETFs? Yes, but less than10% of my portfolio is in them. Connect CA Parth Upadhyaya LinkedIn #Weekendlearnings #Investing #ETFs

Indian Bond Market - : 🔰Globally, the equity markets are massive, with a total market capitalization of around $110 trillion.But guess what? The bond market is even bigger, totalling about $130 trillion. 🔰In India, the story is a bit different. The market cap of the equity markets is about $5 trillion, while the bond market is around $2.5 trillion,So unlike the global trend, India’s bond market is still catching up. 🔰This trend is shifting.RBI is working hard to develop the bond market. Data from the National Securities Depository Lt shows that FPIs made a net investment of ₹121,059 crore in India’s debt markets for FY24. This is the highest inflow since FY 2014-15. 🔰Additionally, India’s corporate bond market is expected to grow. A CRISIL report suggests it could double to ₹65-70 lakh crore ($800 billion) by March 2025, from ₹45 lakh crore ($550 billion) now

New Post: markets: NRI Talk: Why NRIs are increasing equity allocations in their investment portfolios - NRIs have significantly increased their equity allocations in India over the past five years, driven by strong economic growth and political stability. Shantanu Bhargava from Waterfield Advisors notes a shift from debt-focused investments to equities, with NRIs now favoring unlisted securities and diversifying into asset classes like REITs and InvITs. Factors like currency stability and favorable policies have bolstered NRI confidence. Despite a more cautious outlook on future equity returns, there’s a trend toward alternative investments. Regulatory improvements have simplified the investment process, but NRIs must navigate specific restrictions and tax implications, seeking expert guidance for optimal strategies. Read the full article here https://lnkd.in/dgJHk8hZ #Venturecapital #VC #investment #LP #Limited Partner

Midcap and small cap funds sitting on a large pile of cash #Smallcap MF have 15000 Cr cash #Midcap MF 13000 Cr cash I've been closely watching the recent trends in India's small and mid-cap markets and here’s my straightforward take on it: 1. The Big Attraction: India's economy is showing some solid growth prospects. This isn’t just me saying it – FIIs and DIIs are pouring in. Why? Because in a world full of economic uncertainties, India stands out as a promising place to invest. 2. High Valuations: Here’s the thing - small and mid-cap stocks in India are currently priced pretty high. We’re talking sky-high valuations. It’s become a hot topic whether these levels are sustainable or a correction is around the corner. 3. The India Edge: What’s drawing this big investment? Stability and growth. India is playing its cards right - good policies, promising sectors (think tech, renewables), and overall a more stable environment compared to the global economic roller coaster. 4. Risks? Yes, They’re There: With high growth comes the risk of overheating. The market might be due for a correction. It’s something investors need to watch out for to avoid the pitfalls of overvaluation. 5. My Personal View: I'm cautious. Investing in these conditions? Might not be the wisest move. It feels like waiting out for a more balanced market is the smarter play here. Would love to hear your thoughts and perspectives!

Like Fixed deposits, Investors generally Expects consistent return from equities. 12% return Expectation of 1000: Year -1:1120 Year -2: 1254 Year -3:1405 Year -4: 1574 Year -5:1760 But reality will be different Year -1: 8% Year -2: -14% Year -3: 48% Year -4: -3% Year -5: 32% Overall return is same 12%. But How will investor behave...By Year 2, when She/He sees negative return, they panic and give up to book loss. They now resort to fixed deposit. Hence Investment return & Investor return are different. Understanding the Equity beast is important, 15 Year return of nifty 50 is 15.4%. India has grown and so are the companies & profits. Hence, The return. So, What to do in such scenario especially for new investors? Start with Hybrids: They take Debt and equity position both. hence your portfolio will be relatively safe during market downturn. Accept the beast: The markets will provide high returns but will also have negative days. Accept the fluctuations. Never try to buy in down or sell at top. Think long term: Say, I have 20 lac and I want to invest for 1 year, Equity is probably worst choice. Think of 5 years and more. Keep that money in equity which you will need much later. Believe in compounding: You have investment corpus and time at your favor. Returns will be provided by market. Believe in India growth story.

"Buy the Fear, sell the Greed" ...often easy to consider but hard to implement. A few first-principle thoughts I received this morning to alleviate the uncertainty inside all of us - 1) India's SIP book is increasing at an alarming pace 2) MSCI indexing is supporting large-cap growth on a solid footing 3) The stock price of our largest private bank is still up 18% in a year despite all global turmoil 4) A staggering figure of INR 2 lakh crore is sidelined through arbitrage plus long-short funds, which is destined to make its way back to equity markets 5) Retail and growth based FIIs are waiting for a meaningful correction to enter & support the 2030 India vision, coupled with the fact that Mr. Donald Trump will reduce interest rates, thus significantly increasing FII allocation in India (now less than 16% of overall m-cap) 7) Shale oil will be pumped in global markets which will reduce crude valuation and create a stable pricing base for the medium term  8) GIFT city is attracting enviable amounts of capital into Alternative Investment Funds (AIFs) 9) We are underestimating the yet-to-turn-liquid PE money, unlisted pre-IPO money, fintech money, all of which will change hands rationally & generate colossal public float in the next few years to support equity market growth #rideon #invest #longterm #India

Annual net SIP flows have doubled in the last three years, from Rs 𝟬.𝟵𝟲 𝗹𝗮𝗸𝗵 𝗰𝗿𝗼𝗿𝗲 𝗶𝗻 𝗙𝗬𝟮𝟭 𝘁𝗼 𝗥𝘀 𝟮 𝗹𝗮𝗸𝗵 𝗰𝗿𝗼𝗿𝗲 𝗶𝗻 𝗙𝗬𝟮𝟰. - Economic Survey India 𝗧𝗵𝗲𝗿𝗲 𝗶𝘀 𝗮 𝗰𝗮𝘁𝗰𝗵! SIPs are smashing records! Investors are pouring in money, but some are spooked by recent market jumps and pulling out, 𝗿𝗲𝗱𝗲𝗺𝗽𝘁𝗶𝗼𝗻𝘀 are at record highs too 𝟭𝟮,𝟬𝟬𝟬 𝗰𝗿𝗼𝗿𝗲𝘀 𝗶𝗳 𝘆𝗼𝘂 𝘄𝗮𝗻𝘁 𝘁𝗵𝗲 𝗻𝘂𝗺𝗯𝗲𝗿𝘀 𝗶𝗻 𝗝𝘂𝗻𝗲 𝗮𝗹𝗼𝗻𝗲. Don't be them! 𝗜 𝗵𝗼𝗽𝗲 𝘆𝗼𝘂 𝘀𝘁𝗮𝘆 𝘁𝗵𝗲 𝗰𝗼𝘂𝗿𝘀𝗲. 𝗟𝗼𝗻𝗴-𝘁𝗲𝗿𝗺 𝘄𝗲𝗮𝗹𝘁𝗵 𝘁𝗵𝗿𝗶𝘃𝗲𝘀 𝗼𝗻 𝗱𝗶𝘀𝗰𝗶𝗽𝗹𝗶𝗻𝗲, 𝗻𝗼𝘁 𝗼𝗻 𝗽𝗮𝗻𝗶𝗰𝗸𝗶𝗻𝗴 𝗮𝘁 𝗲𝘃𝗲𝗿𝘆 𝘁𝘂𝗿𝗻. 𝗧𝗵𝗶𝘀 𝗶𝘀 𝘆𝗼𝘂𝗿 𝗰𝗵𝗮𝗻𝗰𝗲 𝘁𝗼 𝗿𝗶𝗱𝗲 𝘁𝗵𝗲 𝘄𝗮𝘃𝗲 - 𝘀𝘁𝗮𝘆 𝗶𝗻𝘃𝗲𝘀𝘁𝗲𝗱 𝗮𝗻𝗱 𝘄𝗮𝘁𝗰𝗵 𝘆𝗼𝘂𝗿 𝗳𝘂𝘁𝘂𝗿𝗲 𝘀𝗲𝗹𝗳 𝘁𝗵𝗮𝗻𝗸 𝘆𝗼𝘂 #investing #investments #sensex #AMFI #CFP #sip #cfp #investing #equity #markets #1963capitalIWM #1963capital #sip #mutualfunds #mutualfundssahihai

Indian equities fell into correction zone after scaling several new all-time highs till mid-September 2024, driven by foreign investor outflows. The pullback has been much sharper in certain pockets of the market (materials, energy, PSUs, autos and FMCG) with expensive valuations and muted earnings. Saurabh Jain, Head - Wealth Solutions, India and Ravi Singh, Chief Investment Strategist, share their views on positioning investments amid shifting growth-inflation dynamics. They also give investors a 4-pronged approach to tide through near-term uncertainty. Read the full article: https://bit.ly/3ZE3PQw Saurabh Jain Ravi Singh, CFA, CAIA #StandardChartered #Wealth #WealthSolutions #Investments #MoneyControl