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Saturday, November 12, 2016

Releasing Soon! Wealth-Builder Portfolio Update - Nov'16

Dear Reader,

We continue to remain invested in high quality small and mid cap companies with strong fundamentals and increase allocation in these companies during ongoing market correction. We strongly believe that any significant fall in market from current level must be considered as a buying opportunity. We expect cyclical stocks with strong fundamentals will continue to outperform going forward considering ease in interest rates, stable crude oil prices and higher spending.

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

Sharp fall in stock prices in the month of Jan and Feb 2016 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 this year 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. 

However, FIIs turned net sellers in the month of October and November. FIIs have sold off equities equities over 11,500 crores in October and November so far and we believe FIIs selling Indian equities will continue in coming weeks, 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.

The recent fall in market was due to prevailing global uncertainity which got intensified during the week with Donald Trump winning the presidential election in US and Indian Prime Minister Narendra Modi declaring ban on Rs. 500 and Rs. 1000 Indian currency notes to fight against black money, fake currency and terrorism in India. Demonetization of Rs. 500 and Rs. 1000 currency notes is one of the biggest reform by Modi Government and will be helpful for Indian economy in long term, however in near term it will squeeze liquidity and have a negative impact on overall cash transactions happening in the country.

We believe further correction of 3% to 5% in major indices from current levels can't be ruled out going forward. However as stated in many of our posts earlier, we do not believe in timing the market and always suggest our members to avoid it 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 39.4%, Sensex returns is 37% where as our Wealth-Builder portfolio has given returns of 271.2% to our members.
In terms of performance, 10 top performer stocks out of 16 of Wealth-Builder portfolio have given returns in the range of 50% to 770% 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 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. 

Note: Wealth-Builder portfolio update - Nov'16 will be released on 13th Nov'16 and we will share the same with our Wealth-Builder members.

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