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.
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.
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.
Our aim in Prime Funds review is to ensure that we don’t miss any good opportunities that are coming up and we are not holding on to funds that are slipping. When we remove funds from the Prime Funds list, we tell you exactly what to do if you have invested in these funds.
Our aim in reviewing the Prime Funds list every quarter is to ensure that we don’t miss any good opportunities that are coming up and we are not holding on to funds that are slipping. When we remove funds from the Prime Funds list, we tell you exactly what to do if you have invested in these funds.
Prime ETFs is the list of ETFs that we recommend. This ETF list features both broad-market and thematic indices. We have only added ETFs in this quarter.
Our passive portfolios have seen a new addition this quarter.
Prime Funds is the list of funds that we recommend. This fund list uses Prime Ratings as a first filter, over which we analyse portfolios, strategy, market scenario and much more. Many of you have asked us how we differ from the various MF recommendations out there in the market. The changes we have made in this review cycle are here.
In the first of our series on quarterly review & updates, we are covering some of the key changes in our buy/hold/sell calls in our MF Review Tool. When you do so, please make sure you specifically choose the plan that you hold – direct or regular – as our calls may change in some cases between plans of the same fund.
These are the worst of times for businesses. But the equity markets think otherwise. Dancing to a tune that only the stock market hears, the Nifty has clocked an all-time high PE. Should you rejoice or view this with caution?
The purpose of these disclosures is to provide essential information about the Research Services in a manner to assist and enable the prospective client/client in making an informed decision for engaging in Research services before onboarding. History, Present business and Background: PrimeInvestor Financial Research Private Limited is registered with SEBI as Research Analyst with registration no. INH200008653. The Research Analyst got its registration on August 19, 2021 and is engaged in offering research and recommendation services. Terms and conditions of Research Services: The Research Services will be limited to providing independent research recommendation and shall not be involved in any advisory or portfolio allocation services. The Research Analyst never guarantees the returns on the recommendation provided. Investor shall take note that Investment/trading in stocks/Index or other securities is always subject to market risk. Past performance is never a guarantee of same future results. The Research Analyst shall not be responsible for any loss to the Investors. Disciplinary history: There are no pending material litigations or legal proceedings against the Research Analyst. As on date, no penalties / directions have been issued by SEBI under the SEBI Act or Regulations made there under against the Research Analyst relating to Research Analyst services. Details of its associates: No associates. Disclosures with respect to Research and Recommendations Services: The Research Analyst or its directors or any of its officer/employee does not trade in securities which are subject matter of recommendation. There are no actual or potential conflicts of interest arising from any connection to or association with any issuer of products/ securities, including any material information or facts that might compromise its objectivity or independence in the carrying on of Research Analyst services. Such conflict of interest shall be disclosed to the client as and when they arise. Research Analyst or its directors or its employee or its associates have not received any compensation from the company which is subject matter of recommendation. Research Analyst or its directors or its employee or its associates have not managed or co-managed the public offering of any company. Research Analyst or its directors or its employee or its associates have not received any compensation for investment banking or merchant banking of brokerage services from the subject company. Research Analyst or its directors or its employee or its associates have not received any compensation for products or services other than above from the subject company. Research Analyst or its directors or its employee or its associates have not received any compensation or other benefits from the Subject Company or 3rd party in connection with the research report/ recommendation. The subject company was not a client of Research Analyst or its directors or its employee or its associates during twelve months preceding the date of recommendation services provided. Research Analysts or its directors or its employee or its associates has not served as an officer, director or employee of the subject company. Research Analysts has not been engaged in market making activity of the subject company.
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