SIP as the world knows it as Systematic Investment Plan but we consider is as simple investment plan to build wealth. SIP is nothing but Recurring Deposit with MF

Story No 1: Right Asset Class

There were three friends Pujara, Rahul, and Sehwag. All of them decided to invest 10000 pm in 2003. So now all of them completed 20 years. Pujara invested 10000 pm in Recurring Deposit.

Rahul Invested 10000 pm in Gold and Sehwag invested 10000 pm in SIP in Diversity Equity Mutual Fund.What happens to their investment is very interesting.

All invested 24 Lakh individually.

• Pujara’s 24 Lakhs became 51 lakhs Return of 7 % CAGR ( Bank RD )
• Rahul got 83 lakhs.Return of 11% CAGR ( Gold )
• Sehwag who invests in SIP of Equity Mutual Fund accumulated 1.17 Cr. Return of 14 % CAGR

It means by investing in the Right Asset class one can create Wealth.

Right Asset class at the right time is very important. Equity is the Right Asset class for Long term and discipline investment. Most people remain disciplined with LIC for 20 years to get 4% to 5 % cagr if they do the same with MF SIP Wealth can be created.

Blog by Mr. Santosh G Akerkar for Investor awareness and Educational Purpose.

2023 was really a good year for Investors. All asset classes Equity (21%), Bonds (9%) and even Gold (15%) delivered good returns. But what about 2024, Here are some of the trends worth watching. If we can capitalize on the trend then it will bring profit for you. Its tendency of humans to try predicting future. Even knowing that its beyond our control. We know that future is not knowable. Here in this Blog We also with our studies, data and limited knowledge trying guage trends of Future. Following are few trends to watch for 2024. • Volatile Equity Market We think Equity markets will be volatile in 2024.Difficult year for traders and speculators as market trying to discount future corporate earnings, US recession, elections results in India and US and Geo political issues. • Rupee set to appreciate We are very early in this trend. May be after June-July this trend will be much clear . We believe that US is likely to get in recession or soft landing around May or June 24. After that last 15 years (Since 2008) trend of Rupee (₹) depreciation could reverse for variety of reasons. It means $ could depreciate and ₹ will appreciate. This is likely to be a trend for next 8 to 10 years. Yes speculators can short $ around US recession to get good gains but for us there are many implications . Inflation and Interest Rates to remain Heigh. In India and around the world Inflation and interest rates will remain High for long. In US, Fed will start to cut rates in 2024 but 5 will not become 0 . May be It will remain between 2 to 4 (In US). As our Guru Howard Marks explains in his Memos that We are going through monumental shift for interest rates (Since 1980 ) . So, it’s very clear that interest rates and inflation likely to remain higher for longer. • Don’t underestimate Gold and Fixed Income. Add fixed income and gold to your portfolio to reduce volatility and get better returns. After many years of lower single digit returns ,both Asset classes Bonds and Gold likely to give good double digit returns to investors in next few years We have good allocation to these asset classes for our clients. • Be ready for Positive Or Negative surprises on Political and Election Front. 2024 is election year. Most of the major economies are going for elections in coming year. World is moving from middle to extreme right. We need to get ready for both positive as well as Negative surprises. These are some thoughts on trends for next year or so . I would like to know your views and opinions as well. Wishing you Happy and Prosperous New Year 2024 in advance. Blog by Santosh G Akerkar for Investor awareness and Educational Purpose.

In my financial advising career spanning over almost 20 years. (Started on 6th April 2004). I saw many bull and bear markets including mother of All Bull market between 2003 to 2007 (Sensex from 3000 to 21000). Here are some of my learnings from journey of two decades. Why Sensex is soaring high Now Equity markets run on sentiments currently sentiments and news flows are very positive. There two positive news flows. 1. Its Goldilock situation for India now as after state elections results. It is assumed that India is likely to get stable government at Centre. 2. Fed Reserve American Central bank announced that interest rates will be cut by 75 bps in CY 24. It means emerging market including India will get more flows in market. • What To Do Now 1.Set your Asset Allocation Right Asset allocation is key in investment management and wealth creation. It’s decided as per your Risk profiling. It is correct time to make proper asset allocation. Ideal Asset Allocation could be 50% ,Equity 40% ,Debt 10% Gold. (Differ from individual to individual). 2.Book Profit from Your Direct Equity/stock portfolio Its correct time to get out of junk stocks from your portfolio and don’t add new junk/ penny stocks. Book profit from stock portfolio also. In Mutual Funds no action is required as fund manager does the same for you. 3. Don’t Speculate At top of the market most of the people become greedy and want to speculate. Always remember What is easy to come is easy to go as well don’t get in future option or leveraged positions. Fast money can make you bankrupt also Most importantly stay with well managed and diversify mutual funds. 4. Stay with Experienced Advisor (Min 4 market cycles Exp). Advisors role is important in both situation euphoric situation or depressed situation. He can control your behavioural biases. He knows that market is not in anybody’s control but risk management is in one’s control. 5. Stay cautious on small and mid cap space Mid cap and small cap rallied too fast in last 2 years. I think its time for them to take breather. So be cautious on Mid cap and small cap. So be optimistic and cautious and enjoy the ride.........Blog for Investor Awareness and Education purpose by Santosh Akerkar.