Dear Wealth Creators,
Last year was a good year for capital markets; both equity and debt.
If you can recall our last annual letter, it was mentioned that; “As far as Indian economy is concerned, the solid base for the long term bullish trend is on the way” (For entire write up http://www.megafina.com/CEO-Speaks/Year-2013-14/4228)Suddenly, one political verdict changed everything, including the sentiments of Indians and especially the entire world towards India. It resulted to a fabulous return of Nifty by more than 27% and mid cap by more than 51%!! Interestingly, the equity funds suggested by us have generated additional return of more than 8% to 15%, than its bench mark and that too with controlled risk in stock selection.
Looking to all the media and analyst reports it seems that “This time it’s different”. But believe me these are the four most costly words in the world of investments.
To my opinion, this time we are exactly in the phase of 2003-2004. The reasons and scenarios may be different but it seems history is going to be repeated. To remind you that during the bull run of 2003-04 to 2007-08 market has corrected more than 10% for more than 8 instances. But you should take it as an investments opportunity. This is to be kept in mind especially, as we are now into uncharted territory and there would be doubts in our mind that whether the bear phase has started. Where the markets can go? It is that last time market went almost 3.5 time to the last peak( 6,000 to 21,000). You can easily guess where the markets can go in this bull phase. I strongly believe that next year will be tough for equities with positive surprises and very good returns are expected in debt products also. Even the hybrid products are expected to generate better risk adjusted returns. Please note that there are risk factors which are unknown but we should be in position to manage the risks which are expected to happen across the globe.
As usual, I would like to draw your attention to the fact that “You can never be with the winner as winner rotates”. The data below will give you more clarity.
Don’t look only to past performances and media and so called hot tips. It will be the year to identify the future outlook v/s past performances, long term trend v/s short term volatility, and contrarian view v/s collective expertise.
Further, next year would require strict discipline in investments and we are ready to support you. Asset allocation will be the key and we are fully equipped to guide you for building your portfolio. We are also going to consider the risk profile of yours and for that we are in advance stage of buying one international software.
I would clearly like to inform you that next year will be the year of debt funds when it comes to risk return ratio. I will strongly recommend you not to renew your fixed deposits but to contact us for better returns into fixed deposit type schemes.
We have started a premium service to our clients wherein we provide them proactive advisories to them not only into investments but for the entire financials of the family.
Wish that you earn above average, risk controlled post tax returns in FY 2015-16 and in the journey me and TEAM MEGA is at your services at all the time.
Thanks & Regards