March & April are always busy months for us. These are the months many of you invest for tax exemption and submit relevant documents to tax authorities.
Sensex as on March 31’st 2016: 25,341
Sensex as on March 31’st 2017: 29,620
Sensex has delivered 17% returns over last one year. Mid cap, small cap and broader market have delivered a much higher returns.
Both equity and debt markets did very well last financial year resulting in excellent returns for equity, MIP and balanced funds.
Your portfolio’s good result is due to years of following discipline and sticking with the investment strategy recommended by us. Discipline, patience and time are extremely rewarded by markets.
Returns always come lumpy and it is never a linear growth. So you would continue to see corrections and bear markets. 10% correction may be expected twice a year and a 20% downfall may bound to happen once in two years.
As long as companies and their earnings continue to grow, declines are temporary and uptrend is permanent. Markets would reach new highs every cycle. The lows reached in a new cycle would be higher than the low of previous cycle. We technically term it as “J” curve.
We always try to minimise the triggers which can lead to impulsive decisions. So please don’t look at your porfolios frequently.
One of the reasons why people get good results from some real estate holdings are it is difficult to sell and there is no daily or even yearly quotation. Also a property which is earmarked for your daughter is held for at least one generation.
Whereas mutual funds are easy to sell, you get daily price quotation and rarely earmarked for next generation with emotional attachment. What is actually a boon; easy liquidity and transparency becomes a bane for many investors. If you can hold equity as you would hold to your house, you are bound to get rich over a time.
My sincere and humble request again is don’t check your portfolio frequently.
I take this opportunity to convey our gratitude for being our client. We would strive to add value to your investment journey and ensure that you get rich and more importantly stay rich.
Happy Investing !