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Tuesday, November 22, 2016

Its Time to Start Investing in Wealth-Builder Portfolio Stocks

Dear Reader,

We have seen steep correction in small and mid cap index during last 3 weeks. Recent fall in stock prices with significant correction in major indices got intensified mainly due to 2 reasons, Trump being elected as US President on global front and Demonetization of Rs. 500 and Rs. 1000 note locally. Both triggered a major sell off in Indian equity market. Demonetization measures may have a short-term impact on industries which are majorly dependent on cash transactions. Industries such as construction, real estate, micro finance, hotel businesses, self-owned businesses, jewellery etc will have a major impact. However, we have witnessed steep fall in stock prices during last Friday as well as yesterday, in most of the small and mid cap companies including the companies which are part of our Wealth-Builder portfolio.

We believe major fall in stock prices​ since beginning of this month is mainly due to panic selling ​as market looks oversold at current level. ​Small cap index has fallen the most followed by mid cap index. BSE small cap index and mid cap index has seen a correction of 15.2% and 12.7% respectively since 1st Nov 2016. ​As valuations of many of our Wealth-Builder portfolio companies turns attractive​​ after recent fall in stock prices without any major change in ​business fundamentals, it's advisable to start increasing allocation in these stocks in staggered way to get rewarded in medium to long term.

We continue to suggest our members to remain invested in Wealth-Builder portfolio which high quality small and mid cap companies with strong fundamentals and increase allocation in these companies during ongoing market correction. We strongly believe that its time to start investing in good quality stocks and any significant fall in market from current level must be considered as a buying opportunity to accumulate these stocks further. 

If we look at 2015 and 2016, we find stock market extremely volatile as major indices - Sensex and Nifty made all time high in March last year, later corrected by almost 25% over period of next 12 months followed by sharp recovery of more than 26% during last 8 months from recent lows of Feb'16 and is now again going through correction with continuous selling by FIIs

Recent sharp fall in stock prices is more or less similar to the correction which we experienced in Jan and Feb 2016 this year, it created panic situation for many new investors without any cues and put them on back foot when it comes to investing in equities. In the month of Feb'16, many investors were expecting further fall in stock market with indices testing new lows and hence remained on sidelines. However post union budget, we have witnessed strong rally across all broader indices as FII turned to be net buyers in the month of March and later in following months considering positive developments like Union budget with focus on fiscal discipline, change in Fed views regarding US rate hike, stability in commodity prices and normal monsoon and passage of GST bill which helped major indices, Sensex and Nifty to rise by more than 26% from their recent lows made in last week of Feb this year. 

If we look at recent situation, FIIs turned net sellers in the month of October and November. FIIs have sold off equities equities over 19,700 crores in October and November so far. FIIs selling Indian equities may continue in coming weeks but we do not expect any steep fall in stock market as it will be supported by domestic Institution and fund houses turning them to net buyers.

There is a possibility that markets may drift lower during next few weeks however downside from current levels seems to be limted. Its always wise to avoid timing the market and invest in equities in a systematic way keeping a long term horizon. Moreover, these type of corrections give great entry point to long term investors as they get an opportunity to add high quality companies with strong fundamentals at discounted price.

High quality companies reporting 20-30% + annualized growth can deliver exceptional returns for the shareholders in long termIn case you have not yet started building a portfolio of high quality and high growth stocks for long term wealth creation, please find below the Wealth-Builder portfolio allocation for your reference.

We believe, investing in Wealth-Builder portfolio with regular portfolio review from our end can help you achieve market beating and very good returns over a longer term and help you take care of yourself and your family needs, which ultimately lead to a healthy and wealthy life after retirement. 

Since inception, our Wealth-Builder portfolio has outperformed Nifty and Sensex by wide margin. Since 1st Jan 2013, Nifty has given returns of 34.5%, Sensex returns is 32.7% where as our Wealth-Builder portfolio has given returns of 242% to our members.
In terms of performance, 8 top performer stocks out of 16 of Wealth-Builder portfolio have given returns in the range of 50% to 730% since 1st Jan'13 that too when couple of stocks out of 16 were added in portfolio during last year and this year. Moreover, 10 stocks out of 16 have made 52 week high / all time high recently. We continue to hold these stocks and add more during ongoing correction as we believe these companies are registering good growth every quarter and doing all the right things to continue delivering robust top line and bottom line with strong operating margins.

There were few laggards also which have not performed up to our expectations and we exited these stocks and allocated the available funds to other good investment opportunities to ensure that Wealth-Builder portfolio continue to outperforms major indices by wide margin. 

Wealth-Builder is our offline portfolio management service. Using Wealth-Builder, you can manage your portfolio like a professional.

1. You Plant – You will manage your money at your own. Using your own Dmat account, you will purchase and sell shares at right point of time.

2. We Nurture – We will guide you with detailed report suggesting which stock to buy, at what price to buy and of course how much to buy, when to sell and how much to sell. Based on our recommendations, you will create and modify your portfolio to maximize your returns on your investments over a period of time.

3. You Harvest – It’s a fact that equities can give you maximum returns compared to any other asset class if invested with a long term horizon (3 to 5 years and above). Investing in fundamentally strong small and mid cap companies ensures that you keep harvesting your money in form of regular and higher dividends year after year along with capital appreciation.

Below are the unique advantage and benefits of Wealth-Builder over conventional PMS and Mutual Fund:

1. You manage your money at your own without giving it to mutual fund or PMS with benefit of any time access to your portfolio.

2. You will not be charged any asset management fee, exit / entry load, administration charges. Only one time nominal annual subscription cost will be charged.

3. Wealth Builder ensures capital protection; your portfolio will not be over churned to earn higher brokerage like many brokerage houses.

4. Exposure to our well researched stocks - Hidden Gems and Value Picks.

5. Limited transactions – once or twice in a month, you can manage your portfolio giving only 30 – 60 minutes in a month without affecting your busy schedule.

Wealth-Builder ensures giving better returns compared to major indices like Sensex or Nifty.

Wealth-Builder subscribers need to replicate our recommended portfolio in exact proportion. For ex: If we recommend to invest Rs 50,000 in “x” company with portfolio allocation of 5% in Rs. 10 lakh portfolio, subscriber starting his portfolio with Rs. 2 lakh need to invest Rs. 10,000 in “x” company with similar portfolio allocation i.e. 5%. On monthly basis, we review Wealth-Builder portfolio and update our members in terms of any changes in allocation or exit / entries in stocks based on fundamental analysis and recent developments in these companies.

Start managing your equity portfolio like a professional, subscribe to Wealth-Builder by paying nominal annual fee of  Rs.15,000 for entire year.

Click here to subscribe to Wealth-Builder online. You can avail attractive discounts on our combo packs, click here for details.

In case if you are not comfortable in making online payment, click here to know about our other payment options and bank details.
Do contact us in case of any queries, we will be delighted to assist you. 

Wish you happy & safe Investing.

Team - Saral Gyan