Hello Readers! 

Equity Market saw a tragic fall in the month of March 2020, reasons were many, the COVID-19 pandemic, the oil price crisis, and many others. The complete lockdown announced in India from 24^th March 2020, which continued for four months, contributed more to the fall of the market. Due to the fall, all equity mutual funds were almost showing their returns in red. Because of this many equity investors either stopped their investment or redeemed their investment in panic.

Well, the going November proved to be the golden days for equity investors, and especially for those who didn’t redeem their SIP’s in equity, despite the fall in the market since March 2020. This was because there were many events that took place in November 2020, that gave away for the Equity market to rally up.

Let us recapitulate all the events that took place in November 2020, that will surely prove beneficial to those investors who maintained their patience throughout the whole fall scenario of the equity market.

1. Goldman Sachs, revised their own prediction regarding the NIFTY target, earlier they forecasted that it will go up to 9,600 in 2021, later they predicted that it will go up to 14,100 in 2021. Morgan Manley also update their forecast for the SENSEX upgrade, they said that it will target to 50,000, and the MSCI index (used by international fund houses for benchmarking global equities portfolios) added 12 Indian stocks.

Well, all these events are clearly showing that the investment in the equity market will increase and FIIs have already brought in more than Rs. 55,000 crores in November, the highest ever! In addition to this, India is in its Atmanirbhar phase with the stimulus 3.0 announced on the back of cabinet approval of PLI schemes.

2. COVID-19 vaccines are giving their all-time good news to the market, with multiple players reporting successful COVID vaccine trial rates. This is also a big reason for equity investors to smile.

3. The third big event was the announcement of a new category fund, Flexi-cap funds by the mutual fund regulator in India, SEBI. SEBI has given fund houses the option to convert existing schemes to Flexi Cap, which needs to have at least 65% of their corpus in equity. Those who did not make any changes to their portfolio will surely benefit.

4. The only negative reaction in the month of November was experienced by RBI’s proposal to allow business houses and “well-run” NBFCs to enter banking. But even as experts disapproved, Bank NIFTY gave a thumbs up to a potential “Lakshmi Vikas” reward despite the Lakshmi Vilas risk!

Well, a sudden fall in the market can’t be digested by everyone, but those who are all-time prepared for sudden fall can survive. This clearly shows that risks can’t be avoided, but a good investment strategy is about making decisions that manage risks and increase the odds of achieving your goals.

A smart investment strategy includes the right asset allocation, periodic reviews, and having an emergency fund. These strategies when followed perfectly cushion your bad time, financially, and help you continue your investment without any alteration.

For any kind of query you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.

Happy Investing!

(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee of future returns).