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At current situation, how does one know the right stock to invest in and that too at the right price which will ensure strong returns in the long term? This will be a question that will be the uppermost in the minds of most investors wanting to allocate part of their funds towards stocks. Especially in light of the heightened volatility in the markets in the past.
At current situation, how does one know the right stock to invest in and that too at the right price which will ensure strong returns in the long term? This will be a question that will be the uppermost in the minds of most investors wanting to allocate part of their funds towards stocks. Especially in light of the heightened volatility in the markets in the past.
For instance, take a look at the period between 2005 and early 2008. During that time, there was a general sense of euphoria prevailing in India what with the country consistently logging in growth rates of 9% plus and the stock markets zooming to 21,000 levels. And then this optimism snapped.
The global financial crisis reared its ugly head and sent global economic growth and world stock markets including India into a tailspin. Suddenly there was nervousness all around. Forget bad stocks with bad fundamentals, retail investors in India were loathe to put in their money even in good companies available at attractive prices fearing that prices will fall down further. Then 2013 dawned, signs of recovery began to be noticeable and stock markets surged once again. And with stable government in place the rally started with multi year bull run, major indices Sensex and Nifty continue to make new life time highs this year.
Before the demonetisation event, India was on the track of recovery with factors like normal monsoon, seventh pay commission, public infrastructure investments and low crude oil price favouring it. However post demonetisation and later with implementation of GST last year, we have seen sluggish growth till Sept'17 quarter followed by significant earning growth in Dec'17 quarter. But off lately, the negative sentiments towards small and mid cap companies took over the rally witnessed over last couple of years.
Change in sentiments towards small and mid caps due to various factors like change in portfolio allocation by Mutual Funds to comply with SEBI norms, implementation of Additional Surveillance Measures by SEBI, resignation of auditors of various mid size companies due to fear of being pulled up by SEBI, RBI, MCA have triggered major sell off in small and mid caps since beginning of this year. Even today when major indices Sensex and Nifty are at all time high, BSE Small Cap Index and Mid Cap Index is down by 16% and 11.2% respectively from their high made in January this year. Broader markets have witnessed such a severe correction in small and mid caps for the first time with most of small and mid caps companies share prices falling between 30% to 80% during last 6 months. Does it mean the mid and small cap investing story is over? Absolutely Not!
The fall in stock prices of small and mid caps witnessed in 2018 must be considered as investment opportunity as valuations of many companies which were looking expensive by end of 2017 turned reasonable to attractive post recent correction. However, it's important to invest only in good companies backed by strong fundamentals now available at reasonable to attractive valuations. We believe its good time for long term investors to accumulate stocks of small and mid size companies available at significantly discounted prices. Implementation of various reforms by the government over last 2 years will help Indian economy to grow at a faster pace in coming years.
Corrections in bull market are healthy and give opportunity to invest. Such corrections in bull markets do test your patience and conviction. If you expect a straight-line appreciation in stock markets, that is not going to happen. Profit bookings at regular intervals bound to bring the indices lower.
Before the demonetisation event, India was on the track of recovery with factors like normal monsoon, seventh pay commission, public infrastructure investments and low crude oil price favouring it. However post demonetisation and later with implementation of GST last year, we have seen sluggish growth till Sept'17 quarter followed by significant earning growth in Dec'17 quarter. But off lately, the negative sentiments towards small and mid cap companies took over the rally witnessed over last couple of years.
Change in sentiments towards small and mid caps due to various factors like change in portfolio allocation by Mutual Funds to comply with SEBI norms, implementation of Additional Surveillance Measures by SEBI, resignation of auditors of various mid size companies due to fear of being pulled up by SEBI, RBI, MCA have triggered major sell off in small and mid caps since beginning of this year. Even today when major indices Sensex and Nifty are at all time high, BSE Small Cap Index and Mid Cap Index is down by 16% and 11.2% respectively from their high made in January this year. Broader markets have witnessed such a severe correction in small and mid caps for the first time with most of small and mid caps companies share prices falling between 30% to 80% during last 6 months. Does it mean the mid and small cap investing story is over? Absolutely Not!
The fall in stock prices of small and mid caps witnessed in 2018 must be considered as investment opportunity as valuations of many companies which were looking expensive by end of 2017 turned reasonable to attractive post recent correction. However, it's important to invest only in good companies backed by strong fundamentals now available at reasonable to attractive valuations. We believe its good time for long term investors to accumulate stocks of small and mid size companies available at significantly discounted prices. Implementation of various reforms by the government over last 2 years will help Indian economy to grow at a faster pace in coming years.
Corrections in bull market are healthy and give opportunity to invest. Such corrections in bull markets do test your patience and conviction. If you expect a straight-line appreciation in stock markets, that is not going to happen. Profit bookings at regular intervals bound to bring the indices lower.
The idea really is not to time the markets. That is a feat best left to speculators. For long term investors, even at present when overall valuations of companies seem on the moderate side, there will still be stocks that they can look to add on to their portfolios. These stocks if picked at the right price by proven approaches can turn into multi-bagger opportunities.
We are pleased to share that Hidden Gems (Unexplored Multibagger Small Cap Stocks) and Value Picks (Mid Caps with Plenty of Upside Potential) recommended by our equity analysts in 2017 have outperformed small and mid cap index by wide percentage points ensuring better returns for our members even during tough times.
Below is the performance update of small and mid cap stocks recommended by us in 2017 under our Hidden Gems and Value Picks subscription service:
As illustrated in the table above, average returns (as on date) of Hidden Gems stocks recommended in 2017 is 12.6% compared to small cap index average returns of 8.3%. As on date, Hidden Gems stocks are outperforming small cap index by 4.3%.
Our Value Picks stocks of 2017 also outperformed Mid Cap Index. Average returns (as on date) of our Value Picks stocks is 20.8% compared to average returns of 8% of mid cap index, out-performance of 12.8%.
At Saral Gyan, team of equity analysts keep on evaluating small and mid cap stocks to explore the best Hidden Gems and Value Picks of stock market. Saral Gyan - Hidden Gems and Value Picks are the small and mid cap stocks with high probability to become multi-bagger stocks in future and a path for our investors to create wealth through equity investments in a long run.
We are pleased to share that Hidden Gems (Unexplored Multibagger Small Cap Stocks) and Value Picks (Mid Caps with Plenty of Upside Potential) recommended by our equity analysts in 2017 have outperformed small and mid cap index by wide percentage points ensuring better returns for our members even during tough times.
Below is the performance update of small and mid cap stocks recommended by us in 2017 under our Hidden Gems and Value Picks subscription service:
Our Value Picks stocks of 2017 also outperformed Mid Cap Index. Average returns (as on date) of our Value Picks stocks is 20.8% compared to average returns of 8% of mid cap index, out-performance of 12.8%.
Under our Wealth-Builder service, we encourage our members to replicate our Wealth-Builder portfolio by investing in selective high quality small and mid cap companies. These companies are reporting 20-30% + annualized growth and got their due share of re-rating and delivered exceptional returns to our members so far. Since 1st Jan 2013, Nifty has given returns of 90.9%, Sensex returns is 91.9% where as Wealth-Builder portfolio has given returns of 288.3% returns to our members. In case you have not yet started building a portfolio of high quality and fundamentally strong growth stocks for long term wealth creation, please find below the Wealth-Builder portfolio allocation & performance update for your reference.
We believe, investing in Wealth-Builder portfolio with regular portfolio review from our end can help you achieve market beating, very good returns over a longer team and help you take care of yourself and your family needs, which ultimately lead to a healthy and wealthy life after retirement.
We also take this as an opportunity to inform our readers that our Combo - 2 (Annual subscription of Hidden Gems, Value Picks and 15% @ 90 Days) is the best selling subscription service at Saral Gyan, we have registered maximum subscription of Combo 2 since beginning of this year followed by Combo 1 subscription which includes Wealth-Builder (an offline portfolio management service) also. We keep on updating our members on our past recommendations suggesting them whether to hold / buy or sell stocks on the basis of company's performance and future outlook.
Now you can add power to your equity portfolio by investing in best of small & mid cap stocks - Hidden Gems & Value Picks. You can avail discounts up to 30% and valuable freebies on our services under ongoing Saral Gyan 8th Anniversary Offer. Valuable freebies which make our 8th Anniversary special for all our readers are as under:
1. Maximum discount up to 30% on combo pack subscriptions
2. Hidden Gems Flash Back Report - To be released in Sept'18
3. Value Picks Flash Back Report - To be released in Aug'18
4. 5 Stocks - Potential 5-Baggers in 5 Years Report Update - To be released in Aug'18
5. Existing Portfolio Health Check Up under Wealth-Builder subscription
6. Saral Gyan eBook - "How to Grow your Savings?" worth Rs. 599 for Free.
Wish you happy & safe Investing.
Regards,
Team - Saral Gyan
1. Maximum discount up to 30% on combo pack subscriptions
2. Hidden Gems Flash Back Report - To be released in Sept'18
3. Value Picks Flash Back Report - To be released in Aug'18
4. 5 Stocks - Potential 5-Baggers in 5 Years Report Update - To be released in Aug'18
5. Existing Portfolio Health Check Up under Wealth-Builder subscription
6. Saral Gyan eBook - "How to Grow your Savings?" worth Rs. 599 for Free.
Below table indicates subscription services and discounted prices valid up to 10th Aug'18. Simply click on SUBSCRIBE! link to subscribe to our services online using debit / credit card or net banking facility.
In case if you are not comfortable in subscribing online, you can make the payment through cheque / cash deposit / NEFT transfer in any of our bank and writing back to us sharing transaction details. Click here for bank details.
SARAL GYAN
SUBSCRIPTION SERVICE
|
8TH ANNIVERSARY OFFER
DISCOUNTED PRICE
|
PAY ONLINE
CARD / NET BANKING
|
|---|---|---|
| Hidden Gems | Rs. | |
| Value Picks | Rs. | |
| Wealth-Builder | Rs. | |
| Combo 1: HG + VP + WB + 15% | Rs. | |
| Combo 2: HG + VP + 15% | Rs. | |
| Combo 3: HG + VP | Rs. | |
| Combo 4: HG + 15% | Rs. | |
| Combo 5: VP + 15% | Rs. |
In case if you are not comfortable in subscribing online, you can make the payment through cheque / cash deposit / NEFT transfer in any of our bank and writing back to us sharing transaction details. Click here for bank details.
Wish you happy & safe Investing.
Regards,
