SMFS’ Market Outlook Synopsis & The Path Forward

The outlook going forward is that the equity markets are going to remain volatile till the next Lok Sabha elections which will probably be in May 2019. The markets will take their short term directions from the results. But we are quite bullish on the long term trend.

If we look at the other asset classes-

Gold is down nearly 10% since it touched its peak of Rs 33,500 per 10 gms in 2012.

Property prices in major cities are still down 20-25% over the last 4-5 years.

Debt specifically fixed deposits have finally started rising after a gap of 3-4 years.

Equity is the only asset class which has given annualized returns of more than 12% over the last 4-5 years.

Equity still remains the best asset class as long as you have an investment horizon of 5 years. So please continue with your SIP’s.

For lump sum investments we remain cautious as the markets are still near their lifetime highs and we recommend doing a Liquid to Equity, weekly systematic transfer plan over next 12-16 months.

But above all, please stick to your asset allocation and do not get swayed by the headlines.

Always remember, correct asset allocation  is the key TOWARDS A SECURE FUTURE.