Ankit Gupta’s Post

Many investors are currently focused on investing in equity funds across various market caps, and index funds are also seeing strong inflows. However, I believe there is a significant opportunity in the fixed income space, particularly in long duration funds, which could yield high single-digit to double-digit returns. Following the RBI’s dividend payout of 2.10 lakh crores and S&P’s positive outlook for India, we may see increased global fund inflows that could trigger a rally in government securities yields. Additionally, any potential rate cuts in the next 6-9 months could greatly benefit long duration funds. Therefore, I think it would be prudent to consider some exposure to long duration funds.

In December of 2023, many investment advisors advised their clients to invest in long duration bond funds. The primary premise underlying their advice was that the US Fed shall start cutting rates from February and the RBI shall follow the suit. However, seven months later, neither the US Fed nor RBI have cut rates. The visibility of a material rate cut in 2024 has diminished considerably. The US benchmark 10yr yields are higher by 15bps YTD. Regardless, the benchmark yields in India are lower by 20bps. Long duration bond funds have, on average, yielded a very good return of ~7% YTD. You tell me, if the investors who invested money in long duration bonds were smart or plain lucky?

After a strong performance of our H1 strategy “Sailing with the Wind”, we expect shifts in domestic fiscal & monetary policies to influence Indian assets performance in H2. “Adapting to Shifting Winds” - our H2 Outlook clearly highlights our top preferences , sectors overweights and views on FX. Another comprehensive report by the India Investments Strategy Team. Kudos on the good work. Vinay Joseph & Ravi Singh, CFA #SCInvest

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

Revamping the Indian Bond Market: What Investors Need to Know Exciting times ahead for investors in India's corporate bond market! The RBI and SEBI are rolling out new frameworks to enhance investment opportunities and manage risks more effectively. With the introduction of Credit Default Swaps (CDS), investors can now protect their corporate bond investments from default risks. Mutual funds, which can now both buy and sell CDS, offer a new level of security by insuring against bond defaults and creating additional income streams. These changes mean more predictable returns and increased confidence in the bond market. As investors, we can look forward to a more robust financial ecosystem where companies raise funds efficiently, fueling growth and stability in our portfolios. It's a promising development for those seeking diversified and secure investment options.  #Investing #WealthManagement #CorporateBonds #RBI #SEBI #Finance #IndianEconomy #RiskManagement #CDS #MutualFund

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

Insights on India's Bull Market from Rajesh Bhatia, CIO at ITI Mutual Fund Despite recent slowdowns and foreign institutional investors (FIIs) pulling out, India remains in a robust multi-year bull market, according to Rajesh Bhatia, CIO at ITI Mutual Fund. In a recent interview with ET Markets, Bhatia shared his perspectives on the current market dynamics: Read Full Interview - https://lnkd.in/gAmE3dHx Bull Market Resilience: Bhatia highlighted that India's market has shown resilience, driven by a strong macroeconomic foundation and a multi-year capital expenditure cycle. FII Exits and Domestic Strength: While acknowledging FII exits, he pointed out that domestic inflows have been a structural support, providing depth to the market even as global investors oscillate. Valuation Concerns: He noted that while the market looks pricey with a P/E of 20x FY26, the long-term growth potential remains intact, suggesting earnings growth could mitigate some valuation concerns. Investment Strategy: With the market's current valuation, Bhatia advises a cautious approach, emphasizing sectors like private banks, telecom, and life insurance for value opportunities, while suggesting a systematic investment plan for mid and small caps due to their growth potential. Gold Market Dynamics: Post-election fiscal policies in the US might influence global gold trends, potentially leading to a consolidation phase for gold prices. Rajesh Bhatia's insights underscore the importance of understanding market cycles, capitalizing on domestic strengths, and maintaining a disciplined investment approach in these times. #FinancialMarkets #InvestmentStrategy #BullMarket #IndiaEconomy #ETMarketsSmartTalk

🔔 Market Update: Navigating the Recent Decline & Why Staying Calm Is Key At Ace Financial Services, we understand the recent market fall may have caused concern for investors. We're here to explain the factors driving the decline and offer guidance on navigating these turbulent times. 📉 What Happened? On October 22nd, the Sensex dropped by 931 points, and the Nifty fell below 24,500. Midcap and smallcap indices were hit harder. Here’s why: 1. FPI Selling: ₹82,479 crore has been pulled out of Indian equities by foreign investors this month, shifting investments to China. 2. Geopolitical Tensions: Conflicts in the Middle East and the upcoming US elections are causing global uncertainty. 3. Weak Rupee: The rupee’s recent weakness is increasing fiscal deficit concerns. 4. Maharashtra Elections: Domestic investors are holding back, awaiting election results. 5. Market Valuations: Overvaluation has led to profit booking. 6. Q2 Earnings: Mixed results from Indian companies have added pressure. 7. FIIs vs DIIs: Heavy foreign selling has outweighed domestic buying. 8. Profit Booking: Many investors are locking in gains, leading to the correction. 9. Currency & Interest Rate Fluctuations: The stronger US dollar and RBI policy uncertainty are adding to market concerns. 10. Increased Volatility: The fear index has surged, reflecting higher investor anxiety. Our Guidance We encourage investors to remain calm and focus on long-term goals. Market corrections are a natural part of investing, and the Indian economy remains strong. Now could be an opportunity to invest in quality assets at better valuations. At Ace Financial Services, we’re continuously monitoring the market and adjusting strategies to protect your investments. For personalized guidance, feel free to contact us. #marketupdate #investing #stockmarket #acefinancial #investmentstrategy #marketcorrection

After two consecutive months of net outflows, foreign portfolio investors (FPIs) have reversed course and infused Rs 26,565 crore into Indian equities in June. This surge is attributed to political stability and a sharp market rebound. #India #BullRun #Investment #Equities #News #Report #Finance #NewsUpdate #Finance360

I see The surge in investments through participatory notes (P-notes) in Indian capital markets reflecting growing confidence in the country's economic prospects. With the value reaching a six-year high of Rs 1.5 lakh crore by February-end, it's evident that overseas investors are bullish on India's performance. P-notes offer a convenient route for foreign investors to tap into Indian stocks without the hassle of registration, albeit after due diligence. This uptrend emphasizes India's attractiveness as an investment destination and the resilience of its markets. However, I believe regulatory oversight remains crucial to ensure transparency and mitigate risks associated with P-note investments, maintaining investor confidence in the long term. https://lnkd.in/gysVGeda #IndianMarkets #FPI #ForeignInvestment #BullishMarket #InvestmentStrategy #ParticipatoryNotes #PNotes #OffshoreInvestment