It is with mixed feelings that we write this first annual review of our Prime Stocks performance. When we flagged off stock recommendations as a new addition to our platform on January 14 2021, it was after a lot of internal debate on whether it was the right time to do this.
In our stock recommendations for 2021, our focus was on identifying companies that had the ability to steadily compound earnings over the medium to long term. Valuations were the other key factor against which we balanced earnings.
Prime Funds performance in 2021
Stock markets did not disappoint you in 2021. The various market cap segments delivered textbook-like bull market returns with small caps outperforming midcaps and midcaps outperforming large caps.
When a stock recomendation we give runs up sharply, what should be your course of action? Should you exit or should you hold or should you book profits? We have one of our stock recommendations that presents such a case. This note will tell you what needs to be done. Kindly take the time to …
Prime Stocks: An update on a recommendation Read More »
We’ll explain the Prime Portfolios where we have made changes in this review cycle and the reasons for the same. We’ll also tell you what to do with existing investments in the portfolios.
If you have noticed the portfolios of dynamic asset allocation funds with a fundamental-only driven model, you will see them sporting net equity holdings of under 40% now. In a market where over 40% of the stocks have a price earnings ratio of over 50 times or no PE at all (i.e., the company is loss-making), dynamic asset allocation funds can draw little comfort in holding higher allocation to equity.
Indian investors looking for a high yielding InvIT option for income seekers with relative safety have very limited choices today. Infrastructure Investment Trusts or InvITs, which are a halfway house between stocks and bonds, offer such investors a shot at earning higher yields without high risk to their capital.
Sugar stocks have been fired up lately on expectations that the industry is set to turn a corner. While the sector has seen many false dawns on reform hopes in the past, the changes we are seeing this time around could turn out to be the real deal.
In the first of our updates in this review cycle, we explained the changes we have made to Prime Funds, our recommended fund list. In this second update, we thought to cover two different aspects: one, changes we made to our MF Review Tool, in the way we call out our recommendations. Two, trends we have observed unfolding over the past couple of quarters that we’re keeping a watch on.
We are living in strange times. No, I am not talking of Covid-19. Your one-year returns of equity funds (across categories), at an average 31% between January to March 22, 2021, zoomed to an average 69% since March 23, 2021. In other words, 1-year returns suddenly doubled from March 23, 2021. If you recall, March 23 2020 was a market low. So, 1-year returns from March 23, 2021, have started looking abnormally high.
SEBI has come out with its order regarding l’affaire Franklin Templeton debt funds. The 100-page document is categorical in its indictment of the AMC and the ways in which these debt funds were managed. 2 messages are clear from the order: One, investor protection is paramount to the regulator. Two, fund managers and AMCs cannot take their fund management responsibility lightly.
Fears about a second wave of Covid more virulent than the first, have triggered a fresh bout of panic selling in the market. Stocks that may take a direct hit on their revenues and profits as a result of this have seen a correction. We think this presents a window of opportunity to add select high-quality stocks to your portfolio. We are providing a recommendation on one such stock that has seen a 21% correction from its peak in March.
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• Essel Mutual Fund • Franklin Templeton Mutual Fund • HDFC Mutual Fund • HSBC Mutual Fund • ICICI Mutual Fund • IDBI Mutual Fund • IDFC Mutual Fund • IIFL Mutual Fund • Indiabulls Mutual Fund • Invesco Mutual Fund • ITI Mutual Fund • Kotak Mahindra Mutual Fund • L&T Mutual Fund • LIC Mutual Fund • Mahindra Mutual Fund • Mirae Asset Mutual Fund • Motilal Oswal Mutual Fund • Nippon India Mutual Fund • PGIM Mutual Fund • PPFAS Mutual Fund • Quant Mutual Fund • Quantum Mutual Fund • Sahara Mutual Fund • SBI Mutual Fund • Shriram Mutual Fund • Sundaram Mutual Fund • Tata Mutual Funds • Taurus Mutual Funds • Union Mutual Funds • UTI Mutual Funds • Yes Mutual Funds
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Hybrid: Aggressive Hybrid Funds | Arbitrage Mutual Funds | Balanced Advantage Mutual Funds | Conservative Hybrid Funds | Dynamic Asset Allocation | Equity Saving Funds | Multi Asset Funds | Multi Asset Allocation
Mutual fund rolling returns by category: Balanced Advantage | Conservative Hybrid Fund | Corporate Bond | Dividend Yield | Dynamic Bond | Equity Linked Savings Scheme | Floating Rate | Index Funds | Large and Midcap fund | Large Cap Fund | Liquid funds | Low Duration | Mid Cap Fund | Multi Cap Fund | Short Duration | Small cap Fund | Solution Oriented – Childrens Fund | Ultra Short Duration
Stocks by market-cap:
Large Cap Stocks |Mid Cap Stocks |Small Cap Stocks
Stocks by sector:
Auto |Auto & auto ancillaries |Banks |Capital goods |Cement |Chemicals |Construction & infrastructure |Consumer discretionary |Consumer durables |
E-commerce |Entertainment |Fertilizers |Finance |FMCG |Hotels & restaurants |IT |Jewellery |Logistics |Media |Metals & mining |Oil & gas |Packaging |Paper |Pharma & healthcare |Plastic products |Power |Realty |REIT |Retail |Sugar |Telecom |Textiles |Trading
Popular stocks:
Reliance Industries Ltd |Tata Consultancy Services Ltd |HDFC Bank Ltd |Hindustan Unilever Ltd |Infosys Ltd |Housing Development Finance Corporation Ltd |Kotak Mahindra Bank Ltd |ICICI Bank Ltd |Bajaj Finance Ltd |Bharti Airtel Ltd |ITC Ltd |Asian Paints Ltd |HCL Technologies Ltd |State Bank of India |Maruti Suzuki India Ltd
