INSUBCONTINENT EXCLUSIVE:
Data from Association of Mutual Funds in India shows unabated fund flow through Systematic Investment Plans (SIPs) month after month
unaffected by high volatility on the bourses
This underlines the fact that in many ways the Indian retail investor has come of age and is ready to understand long-term investing
discipline.
With growth of low-cost do-it-yourself online broking platforms and increasing surplus incomes the Indian retail investors is a
rookie fund manager in his own ways.
While most of the investible surplus should find its way through well managed mutual funds through
SIPs, some of the well-informed investors could look at direct investment in equities
Now, the question is whether it is a good time to pick value investment opportunities after a phase of sustained sell-off for the last few
Many smallcap and midcap stocks, which have been beaten severely, despite strong fundamentals and good management are available and could
very well become the fastest wealth creators in the next decade
Some largecaps could also be in the list.
But as the ocean bottom looks attractive there are a few advises the do-it-yourself investors may
look at to protect his capital and complete a successful wealth creation journey
The most important rule is to look at the price in relation to value
Even if some scrips are down 60 per cent, they may still be overvalued.
Also, only if you understand a business then only invest long-term
and if you do so, believe yourself as a part of the firm rather than just a paper owner.
If you want to go deeper at finding value, follow
He says, use book value as a starting point to try and establish the value of the enterprise
rather than buying earnings because earnings can dramatically change in a short time
In the current Indian scenario many would try place bet on expected earnings as many companies have shown improved earnings in the second
quarter of the current financial year
momentum has been healthy at 26 per cent year-on-year, profit growth has been significantly weak due to higher input and interest costs
Aggregate PAT, even excluding PSU banks, has grown only 7 per cent year-on-year compared with 27 per cent year-on-year last
quarter.
Earnings downgrades are, therefore, likely to continue for the remaining FY19
opportunities at this juncture.
Some of the suggested stocks include Aarti Industries, Biocon, Mind Tree, Mphasis, Petronet LNG, and
Reliance Industries among others
My dear do-it-yourself investors I know you are insightful and intelligent but always remain cautious because even the most flamboyant fund
it would affect you negatively
Also listen to suggestions of people you respect but remember it is your own money and it is harder to keep money than to make it
Hence be prudent and patient and create a successful wealth creation journey.
