Tuesday, May 27, 2014

ABKI BAAR INVEST KAR YAAR...!!!

ABKI BAAR INVEST KAR YAAR….!!!

In the last few months stock market have delivered handsome return. Some of equity mutual funds scheme like Birla Sun Life Pure Value Fund, ICICI Prudential Midcap have given more than 40% return in last six months. Retail investors have missed this early part of market rally but now it seems they have started entering in this bull rally. According to available data, in the last six months foreign investor has invested huge money but the retail equity funds has witnessed the outflow.

Although many of retail investor has already missed the rally of the market, they need not to repent. Even if you have not invested in market till date, my advice for those start investing in the market with immediate effect. In simple language my advice to all investors that ABKI BAAR INVEST KAR YAAR (Don’t miss this bull market rally, participate in it and be part of this long bull run.) There are few points to understand why I am so bullish about this bull market:

The benchmark Sensex has rallied over 20% in the last 6 months and now at around 15 PE. There are still midcap and small cap stocks whose valuations are very reasonable or below from the fair value. So there are good room for growth of mid and small cap rally.

Market may be consolidate for few months or even may be decline from current level but in the long run it will outperform to all asset class. After the announcement of election result the no. of investor has risen significantly. It indicate that more people are willing to participate in this bull run.

During 2008-13 our corporate has restructured itself and have become more competitive. The newly elected government has boosted the sentiment of business community and investor which has already reflecting in the no. of market indicies.

Nifty and Sensex are at the all time high in these days.The Indian rupee is now stable against US currency which is good sign for the economy. The corporate profits as a percentage of GDP have reduced to 4.2% in 2013-14 which was 7.8% in 2007-08. If corporate earnings become long term average 5.6% of GDP by 2018 then there would a 22% CAGR growth for in the next 4 years.

FII have shown big faith in Indian market but our domestic retail investor has not shown any faith in last six months. There are many more reasons which are indicating the big bull run in our market within next 5 year and I would like to say to every investor that be the part of this bull run. ABKI BAAR INVEST KAR YAAR…!!!!!

If you want more information regarding investment or you have any other query about investment feel free to ask us.
Warm regards,

Arvind Trivedi
Certified Financial Planner

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