Continuing with the weak momentum in the previous month, the markets continued to sulk in January. Given that it was a period running up to the Union Budget, markets were in an uncertain mode. All the main indices ended in the red during January 2023. FIIs continued to sell. They sold stocks worth Rs. 30,000 crore during the month. The Nifty as well as the mid and small-cap indices recorded somewhat similar performances in January. During the month, 171 of the 311 PMS strategies (a little over half) delivered better returns than the Nifty. Asset allocation would have worked, given that multi-asset fund strategies had a strong January.
Indices continue to sulk, even as 205 PMS strategies outperform the Nifty
Equity indices had very little to cheer about in February. Despite the generally positive outlook on the economy and markets following the Union Budget, the Adani-Hindenburg saga weighed on sentiments. Another dampener was the Reserve Bank of India’s unexpected rate hike early in the month.
Private Market and Alternative Investments - An NRI Perspective
For NRIs considering avenues to invest and participate in the India growth story, here is a lot of useful information and perspective. Mr. Krishnan Ramachandran-CEO Barjeel Geojit Financial Services answered questions from Mr. Vikas Sachdeva, MD, and Mr. Madanagopal Ramu, Head-Equities, both from Sundaram Alternates, on the evolving investment opportunities.
Global Solutions for Evolved Investors
For decades, HNIs and UHNIs have preferred traditional investment options such as physical assets like gold and real estate, direct stocks, fixed deposits, and bonds. As the financial landscape has transformed in recent years, so has the way HNIs invest their money. Traditional investment options are being replaced in recent times by innovative investment solutions that take into account the risk-reward profile of the investor and assist the HNIs in preserving and growing their wealth. The emerging investment avenues where the HNIs are putting their money in recent times and are also expected to remain the key investment themes in 2022 are AIFs, MLDs, Real Estate Investment Trusts REITs, InvITs, as well as Pre-IPO securities, and offshore investments. They also necessitate a larger investment corpus and are typically handled by experienced and highly skilled wealth managers and fund managers who understand the HNIs' investment goals and expectations.
Key to Consistent Performance
Investing today is incomplete without talking about fund vehicles such as mutual funds. They offer many benefits, like easy access to financial markets, portfolio diversification, and ease of monitoring, among a host of others. When you invest in mutual funds, every investment decision that a mutual fund manager takes involves a degree of risk. Consistent performance over market cycles indicates experience and expertise to navigate a fund portfolio through tough times and generate superior returns when markets are climbing. Hence, it is also essential to pay attention to the portfolio characteristics of a mutual fund scheme, as the fortune of a mutual fund scheme is closely linked to the portfolio it holds. If the portfolio characteristics of the scheme are not up to the mark, it could show up in inconsistent returns. In this webinar blog, we shall discuss the Indian Market outlook for 2023, the Performance of PMS, the China Plus one strategy, the Performance of Indian IPOs, and the Indian Automotive Industry, among others.