SIP is a good investing methodology for investors. The key proposition is its simplicity.
What has happened in recent past that has turned the pitch for the option writers? Higher volatility.
Everyone is grappling with contrasting set of numbers – Rising Nifty, Falling economic data. This is on account of low interest rates and liquidity.
This blog is addressed to all those who receive WhatsApp messages and SMS on options trading which gives false promises of making 1% returns weekly, multiplying Rs10,000 ten times or a variant of these.
This century had one decade of good earnings followed by one lost decade. The odds are high that normalcy will come back in FY22 and EPS growth can go back to 10% range. If God is kind, we can grow even faster this decade; a possibility most people have written off for now.
We expect the corporate earnings to decline in FY21, given our expectation of contraction in GDP. We remain overweight on Pharma, Telecom, Insurance and maintain underweight on cyclical sectors like Industrials, Metals & Mining, etc.
A spending plan of three to five percent of GDP directed at small businesses, low- income households and financial sector along with long-pending reforms can drive a rapid recovery.
The lockdown has shut down non-essential businesses for weeks and most likely result in GDP contraction in 1QFY21.
We are passing through the last phase of pain that began with demon, followed by GST implementation and then IL&FS defaults. We believe that economic indicators will start looking up over the next two quarters.
I am convinced that passive funds will do well in India. We launched the least cost ETF some years ago but had to restructure as increasing the AUM to respectable levels was a challenge.