Founder's Portfolio: 2008-2026
"Active management is easy to defend in a presentation. It's a different thing entirely when your own capital is in the same portfolio during a volatile quarter. That's the version of conviction that matters. At Cambridge Wealth, my money follows the same strategy as yours. Every allocation decision, every realignment call, every period of market volatility, I'm not watching from the outside. I'm inside it with you. That changes how you think. It should."
Ease in Crude
2026 Q1: April - June
Nifty Change
Portfolio Change
Event Fallout
- Crude prices retreated from their March peak as the Middle East conflict showed signs of easing, removing the single biggest pressure point.
- The relief was uneven, tensions resurfaced briefly through the quarter, keeping crude and the rupee volatile.
Portfolio Composition
Market Mood
- Broad retail participation spread well past the metros.
- Foreign investors stayed unconvinced even as prices hit records, leaving a visible gap between domestic optimism and global caution.
Portfolio Action
- Trimmed cyclical equity that had outrun its fundamentals.
- Added staggered investments to Private Equity and Global Placements, a selective business, which showed the right pricing point.
- Debt positioning remained steady through the quarter
The Hormuz Shock
2026 Q4: January - March
Nifty Change
Portfolio Change
Event Fallout
- A Middle East conflict pushed crude to multi-year highs.
- For a crude-importing economy that is a fundamentals problem: inflation, currency and current account hit at once.
Portfolio Composition
Market Mood
- Broad, largely indiscriminate selling, with frequent comparisons to the 2022 oil shock.
- High FII Selloff, and significant capital erosion.
Portfolio Action
- Trimmed crude-import-sensitive equity exposure and shortened debt duration to limit rate and currency pass-through risk.
- Added tactical exposure to commodities and structured credit as a hedge against continued crude-led volatility.
The India–US trade deal
2026 Q3: October - December
Nifty Change
Portfolio Change
Event Fallout
- The tariff fight was ending. US-India trade deal progress removed the biggest reason they'd stayed out all year.
- Fourteen flat months while earnings grew meant valuations were no longer the "too expensive" market of 2024.
Portfolio Composition
Market Mood
- The market came back optimistic, a relief and validation after a long consolidation.
- Rising volumes and coordinated sector participation suggested the start of a trend.
Portfolio Action
- Equity was rebuilt into cyclicals, financials and infra trimmed earlier in the year, with partial profits booked where names had run ahead of fundamentals.
- Private Equity & Global Placements deployment accelerated, as valuations normalised after fourteen flat months and earnings visibility improved.
- Alternative Alpha retained a measured hedge despite the rally, given the pace and scale of the move.
The Tariff Impact
2025 Q2: July-September
Nifty Change
Portfolio Change
Portfolio Narrative
FII outflows and trade uncertainty demanded repositioning, not panic. We reduced mid & small-cap exposure, where liquidity dries first, and moved into quality large-caps and balanced advantage funds. The shift prioritizes capital preservation while maintaining equity participation.
Event Fallout
- FIIs turned net sellers for the 3rd consecutive week in July, with outflows of ₹69.4B.
- U.S.-India trade tensions escalated as new U.S. tariffs on Indian exports created uncertainty.
- Lacklustre corporate earnings from several major firms led to widespread profit booking.
Portfolio Composition
Market Mood
- Sentiment swayed from cautious optimism to worry.
- Retail investors pulled back after 13 months of correction.
- Market SIP flows held steady, showing discipline despite the noise.
Portfolio Action
- Reduced mid and small-cap exposure;
- increased allocation to defensive large-cap and flexi-cap funds
- Shifted toward balanced advantage and multi-asset strategies to cushion downside while maintaining participation
The Policy Shield
2025 Q1: April-June
Nifty Change
Portfolio Change
Portfolio Narrative
After months of caution, market momentum began to return, but our actions remained measured. We used this phase to reinforce portfolio quality, not chase every uptick.
Event Fallout
- RBI cut rates by 50 bps to support growth as inflation eased.
- Crude prices stay range-bound; inflation data remains within comfort.
Portfolio Composition
Market Mood
- Markets hold near highs, but leadership narrows
- Retail sentiment stayed positive, driven by steady SIP flows
- FIIs turned selectively optimistic after earlier caution
- Debt market stability improves, favouring high-quality accrual funds
Portfolio Actions
- Stayed invested, letting SIPs do their quiet compounding as momentum returned
- Trimmed exposure in overheated small-cap and thematic names where optimism ran ahead of earnings
- Reallocated selectively to quality large and flexi-cap strategies that benefit from early-cycle earnings improvement
- Increased exposure to short-duration and roll-down debt funds post-RBI rate cut, locking in yields while reducing duration risk
Conviction Holds, Even as Noise Rises
2024 Q4: January - March
Nifty Change
Portfolio Change
Portfolio Narrative
Even as overall sentiment remained positive, we stayed anchored to fundamentals—seeking growth, but only where it was backed by quality and valuation comfort. This quarter wasn’t about following the crowd; it was about acting with quiet conviction, guided by long-term clarity rather than short-term enthusiasm.
Event Fallout
- Interim Budget focuses on fiscal prudence, avoids populist splurges
- Fed signals possible rate cuts by mid-2025, but stays non-committal
- Domestic earnings remain strong but broad-based growth elusive
Portfolio Composition
Market Mood
- Nifty stays buoyant, but leadership narrows to a few heavyweight names
- Defensive sectors outperform mid-cap excesses
- Real estate and manufacturing themes continue to attract flows
Portfolio Actions
- Increased exposure to select manufacturing-focused funds
- Added dynamic asset allocation strategies to balance risk
Under the Surface, Signals Shift
2024 Q3: October - December
Nifty Change
Portfolio Change
Portfolio Narrative
Our approach this quarter was measured and intentional. Rather than chasing market highs, we focused on strengthening the core of the portfolio.
Event Fallout
- Sticky US 10Y yields delay soft-landing optimism. India Inc’s Q2 FY25 earnings outpace expectations.
Portfolio Composition
Market Mood
- Risk-on sentiment in retail; institutional flows turn selective
- Infra, PSU, and defence narratives continue to attract momentum
- Mid and small caps begin showing signs of overheating
Portfolio Actions
- Booked partial gains in frothy small-cap and thematic exposures
- Gradual reallocation to large-cap compounders and global funds
- Rolled over STPs, held back lumpsum entries to wait for better pricing
Rising Challenges in Indian Growth Story
2024 Q2: July-September
Nifty Change
Portfolio Change
Portfolio Narrative
With the election discourse taking center stage, market volatility was seen. The majority win has led to the emergence of a new coalition govt.
Event Fallout
- Shifting geopolitical dynamics are introducing potential strain to the market.
- There is growing overvaluation in Indian stocks, particularly in the mid-cap & small-cap segments
Portfolio Composition
Market Mood
- The market appears bullish but is highly sensitive to risks, which could lead to sharp declines.
- Pessimistic market narratives are emerging, amplifying risk of significant sell-offs during periods of heightened uncertainty.
Portfolio Actions
- Rebalancing for improved resilience, we focus on high-quality multi caps
- Incorporating hybrid instruments & derivatives like long-short strategy to capitalise on potential downturns & add flexibility to the folio.
India's 2024 Election
2024 Q1: April-June
Nifty Change
Portfolio Change
Portfolio Narrative
With the election discourse taking center stage, market volatility was seen in anticipation of the new govt formation & potential risks associated with current policies driving growth. However, the majority win has led to the emergence of a new coalition govt, which is expected to positively impact India's growth story. Yet, this also brings forth new challenges for the Indian market, including the persistent optimism that currently resides within it.
Event Fallout
- BJP won the 2024 elections, with the rise of a new coalition govt.
- BSE Sensex & NSE Nifty continue to hit record highs
- Growing anticipation of new govt's upcoming budget & its policy directions.
Portfolio Composition
Market Mood
- Bullish momentum remains strong, despite potential foreign institutional investor (FII) sell-off
- Extreme optimism is pushing valuations even higher, contributing to elevated market risks.
Portfolio Actions
- Selective allocation to sectors driving current Indian market cycle: Indian Pharma, Manufacturing, and Consumption.
- Aims to capture opportunities, while managing risks in an overheated market.
Regulatory Measures Shaping India's Economic Landscape
2023 Q4: January - March
Nifty Change
Portfolio Change
Portfolio Narrative
With the interim budget allocation and proposed growth plan for India, there has been a surge in market optimism during the first half of the quarter. Therefore, in light of policy consistency, we are bullish on Indian growth. However, to safeguard against the volatility stemming from upcoming elections and regulatory changes, we have allocated a significant portion to debt, offering downside protection while leveraging market upturns.
Event Fallout
- Q4: Global markets stagnated, India stood out.
- Regulatory actions: SEBI & RBI targeted overvaluation & credit lending, emphasizing India's reliance on solid fundamentals.
- Pick in commercial real estate demand
Portfolio Composition
Market Mood
- The market surged in the first half on optimism for India's 2024 election year, driven by policy expectations and stable inflation. But regulatory changes later caused a shift to pessimism.
- Growing startup culture and improved business environment driving commercial real estate demand
Portfolio Actions
- Reduced small & mid cap exposure for risk management. Continuing SIPs for long-term growth.
- Capitalizing on interest rate cycle with medium-term high-yield debt.
- Invested in quality CRE funds.
Indian Market Rallies
2023-24 Q3: October-December
Nifty Change
Portfolio Change
Portfolio Narrative
Given the upcoming elections and potential market volatility, we're being cautious. Our preference is for hybrid funds, especially those focusing on large-cap investments. These funds have good profit potential and typically hold up well during volatile times, thanks to strong industrial fundamentals.
Event Fallout
- India's stock market ranks 4th globally.
- Growing at 15% annually, outpacing the global average of 9.32%.
- In November, 58 companies raised ₹53 crore, boosting India's market value by $50 billion.
Portfolio Composition
Market Mood
- Market surge fueled by optimism for India's 2024 election year with anticipated policy consistency, growing consumption metrics, increased domestic participation & stable inflation rates.
Portfolio Actions
- Rebalancing gains to large-cap-biased multi-cap strategies.
- Allocating to consumption & infra funds for Capex trend.
Adapting to Adversity
2023 Q2: July-September
Nifty Change
Portfolio Change
Portfolio Narrative
While it's true that the markets have performed quite decently over the last quarter, it's also worth noting that this might not be a trend that continues indefinitely. It might be a good idea to prepare for a potentially higher market volatility as we approach the 2024 elections.
Event Fallout
- Despite short term volatility, market still had a positive outperformance
- India's Q2 2023 GDP Surges at 7.8% on Robust Consumption & FII Investments.
- The volatility pertained globally over renewed weakness in the Chinese real estate sector.
Portfolio Composition
Market Mood
- Despite the volatility experienced throughout the quarter, the prevailing sentiment has remained optimistic. However, as we approach the end of September, concerns on volatility are becoming more prominent.
Portfolio Actions
- Increasing allocation towards hybrid structures to take advantage of growth opportunities while maintaining a secure position through bonds.
Capturing Market Momentum
2023 Q1: April - June
Nifty Change
Portfolio Change
Portfolio Narrative
In a market rally, avoid impulsive decisions. Prioritize quality by seeking companies with strong fundamentals, solid earnings growth, and resilience to market downturns. Notably, such a rally has been constantly observed with an approaching general election, fueled by increased capital spending
Event Fallout
- Nifty at all-time highs on strong FII inflows.
- RBI adopts rate hike stance amid easing inflation.
- Increased market demand, robust corporate earnings, strong banking system, & govt. capex boost market sentiment, attracting FIIs
Portfolio Composition
Market Mood
- The market is optimistic due to improving macroeconomic indicators, stable geopolitical conditions, reduced inflation, and stable global interest rates.
Portfolio Actions
- Increased equity allocation to seize market highs and minimized debt to capitalize on potential equity growth
Taming Inflation: Central Bank Measures
2022 - October
Nifty Change
Portfolio Change
Portfolio Narrative
A balanced approach to the portfolio with a focus on both equity and debt investments could be the key to weathering any potential volatility in the markets while still positioning for long-term growth.
Event Fallout
- Indian & developed equity markets rose sharply.
- Central bank inflation policies impact global equities.
- Domestic demand recovered to/pre-COVID levels.
Portfolio Composition
Market Mood
- Domestic demand surpasses pre-COVID levels.
- India appears more economically stable.
Portfolio Actions
- Continuing with the position composition.
Moderation in Global Commodity Inflation
2022 - July
Nifty Change
Portfolio Change
Portfolio Narrative
With the possibility of a US recession, it's a good idea to keep your portfolio balanced. Try combining high-growth and defensive stocks to protect against any ripple effects on global markets, including India.
Event Fallout
- FII flows turned positive since Sep-21.
- RBI eased rules to boost forex inflows, allowing easier foreign investment in Indian debt.
Portfolio Composition
Market Mood
- Market participants are now fearing a possibility of a US recession but India is still in a good space.
Portfolio Actions
- Increasing position to debt as recession fears continues.
Recession Fearing in the U.S.
2022 - June
Nifty Change
Portfolio Change
Portfolio Narrative
It appears that the market is currently experiencing a period of heightened uncertainty. focusing on defensive stocks that are less sensitive to macroeconomic risks.
Event Fallout
- US recession fears & rising rates weakened markets.
- Resulted into huge FII outfolow
- Global growth is expected to moderate in 2022
Portfolio Composition
Market Mood
- Heightened uncertainty due to inflation & global central banks raising interest rates to tame it.
Portfolio Actions
- Adding to debt. selling off equities as recession fears.
Russia Forces Invade Ukraine
2022 - June
Nifty Change
Portfolio Change
Portfolio Narrative
Equity markets tend to overreact due to the uncertainty factor due to fear of higher inflation and the potential for economic growth derailment.
Event Fallout
- Europe's biggest attack since WWII.
- Inflation fears, growth derailment.
- Commodity price surge, supply chain disruption.
Portfolio Composition
Market Mood
- Equity markets tend to overreact to adverse geopolitical events due to the uncertainty factor.
Portfolio Actions
- Continuing with the position composition. No changes due to uncertainty
Strong Earnings Amid Second Covid-19 Wave
2021 - August
Nifty Change
Portfolio Change
Portfolio Narrative
The market's feeling optimistic with the economic recovery from COVID-19 disruptions. Serving a great time to review & adjust portfolio to seize potential upside while minimizing risks
Event Fallout
- Strong corporate earnings despite the 2nd wave.
- Healthy macro data indicating economic recovery
- FPI flows turn positive after 10 months of selling
Portfolio Composition
Market Mood
- Optimism on the back of economic recovery from COVID disruption
Portfolio Actions
- Continuing with the position composition. Rebalancing equities with growth opportunities.
COVID-19 Correction Phase Recovery
2020 - June 18th - July 28th
Nifty Change
Portfolio Change
Portfolio Narrative
In the short term, we are more positive on sectors that demonstrate resilience in revenue and earnings. Sectors such as consumer goods, Healthcare and Telecom are expected to perform well.
Event Fallout
- Reopening of economies post the lockdown
- Economy's Reopening Fuels Increased Demand
- Rise in FII & DII inflows
Portfolio Composition
Market Mood
- Market is optimistic as country controls case-fatality ratio and improves recovery rates.
Portfolio Actions
- Increasing allocation in equity and rebalancing towards the non cyclical industry.
COVID-19 (Lockdown 1)
2020 - March
Nifty Change
Portfolio Change
Portfolio Narrative
In India, the govt. took action by announcing a 21-day lockdown to control the virus spread. People are now being cautious and adopting a wait-and-watch approach before making big investment decisions.
Event Fallout
- 24 March 2020: 21-Day Lockdown to Combat Virus
- Sharp corrections in various asset classes ob
- US worst affected, followed by Italy and Spain.
Portfolio Composition
Market Mood
- Panic all around
- Disrupted supply chain
Portfolio Actions
- Held on to equity even though 30% value was wiped off.
Corporate tax reform Landscape
2019 - Sep 20th - October 25th
Nifty Change
Portfolio Change
Portfolio Narrative
Should consider adding quality stocks to portfolio that have potential for long-term growth. Should also keep a close eye on global cues & ensure portfolio is well-diversified to withstand any potential risks
Event Fallout
- Corporate tax slashed to 22% for domestic firms.
- Surcharge on equity capital gains lifted for all
- Increase in FII inflows.
Portfolio Composition
Market Mood
- Equity market sentiments continued to remain in the positive territory led by global cues.
Portfolio Actions
- Increased equity due to positive domestics factors.
Easing trade tensions between US and China.
2019 - March
Nifty Change
Portfolio Change
Portfolio Narrative
I believe as an investors we should remain focussed on the opportunity that is offered by India's growth story. Continuing the SIP would be beneficial for a long-term investor in the current environment.
Event Fallout
- Rupee gained 2.3% against the US dollar
- Strong FII buy - Invested over US$ 10 billion in the Indian market.
Portfolio Composition
Market Mood
- Positive momentum and optimism in equity market
Portfolio Actions
- No change in current position and reviewing for any potential risks
IL & FS crisis
2018 - Sep 14th - Oct 25th
Nifty Change
Portfolio Change
Portfolio Narrative
Concerns of liquidity issues in the NBFC space dented the market space, making it a challenging month for investors. The factors to closely track in the near to medium term would be corporate earnings, RBI’s policy actions.
Event Fallout
- IL& FS crisis led to liquidity crisis in NBFC
- FIIs turned net sellers due to rising FED rates.
- Global issue, US china trade war escalated
Portfolio Composition
Market Mood
- Market space dented by concerns of liquidy issues in the NBFC space
Portfolio Actions
- Moving out from banking and finance sector and increasing holdings in commodities to mitigate volatility.
US China trade war & PNB scam
2018 - February - March
Nifty Change
Portfolio Change
Portfolio Narrative
The introduction of a 10% LTCG Tax on equities will impact equity investment returns. Additionally, India's stock market performance has closely mirrored the global weak trends.
Event Fallout
- 10% LTCG tax on equities in Union Budget.
- Tariffs on Chinese imports in US-China Trade War.
- Faster interest rate hikes by Federal Reserve.
Portfolio Composition
Market Mood
- Fraud at top Public Sector Bank adversely affects market sentiment.
Portfolio Actions
- Holding on the current positions as these are short term fluctuations.
Good and Services Tax
2017 - July
Nifty Change
Portfolio Change
Portfolio Narrative
GST was positive for the economy, but smaller firms and the unorganized sector faced initial hurdles. Overall, the outlook remained positive.
Event Fallout
- Equity markets recorded fresh highs
- GST implemented from July 1st
- FII and DII strong buy
Portfolio Composition
Market Mood
- Large companies will handle GST better; smaller ones may face initial hurdles.
Portfolio Actions
- Continued adding equities as positive indicators continue to come in.
Equities marked a strong start in 2017
2017 - Jan-Feb
Nifty Change
Portfolio Change
Portfolio Narrative
Equity markets bounced back in March on positive global cues. Consider investing in less-affected sectors like Pharma, Energy, and Telecommunication.
Event Fallout
- Strong rebound fueled by domestic & global markets
- Positive US economic data indicators.
- Demonetization impact on companies better than feared.
Portfolio Composition
Market Mood
- Demonetization's lack of major negative surprises boosted investor sentiment, with markets now trading at pre-demonetization levels.
Portfolio Actions
- Started accumulating equity after the downfall.
Demonetization a surprise!
2016 - Nov 8th to Nov 24th
Nifty Change
Portfolio Change
Portfolio Narrative
Govt.'s focus on promoting digital payments & reducing cash reliance has potential long-term benefits but may cause short-term issues due to mismanagement & a liquidity crisis.
Event Fallout
- Indian government's surprise demonetization of INR 500 & 1000 rupee notes.
- RBI imposed cash withdrawal & conversion restrictions until December 30, 2016.
Portfolio Composition
Market Mood
- Panic all around
- Liquidity crisis
Portfolio Actions
- Held on to the current composition. Liquidity would impact equity markets.
New Year fails to remove gloom
2016 - Jan 5th - Feb 11th
Nifty Change
Portfolio Change
Portfolio Narrative
Investing in fixed-income bonds can offer a hedge against market volatility, which may arise due to significant changes in global market dynamics & potentially impact the Indian market.
Event Fallout
- US Fed raises interest rate after nine years, causing volatility.
- FII sell-off increases amid global economic slowdown and commodity price meltdown.
Portfolio Composition
Market Mood
- Gloomy all around in the global market
Portfolio Actions
- Further reduced position in volatile equities and added more in debt.
Concerns over slowing global growth
2015 - Aug 18th - Aug 26th
Nifty Change
Portfolio Change
Portfolio Narrative
Worries about China's economic slowdown spurred currency market instability. Investors eye safe-haven assets like gold for stability during economic turmoil
Event Fallout
- China Crisis: Global currency market volatility, slowing growth, and Yuan devaluation.
- Crude oil prices down with concerns over weak demand amid China's slowdown.
Portfolio Composition
Market Mood
- Weak sentiment across markets due to weak global outlook
Portfolio Actions
- Booked some losses and reinvested in gold.
Equities ushered in 2015 on a new high
2015 - Jan 6th - Jan 26th
Nifty Change
Portfolio Change
Portfolio Narrative
In January 2015, Indian equities surged due to the ECB's QE announcement, lower global oil prices, and an unexpected RBI interest rate cut.
Event Fallout
- RBI cuts the interest rate by 25bps
- Global liquidity improves with ECB's Quantitative Easing program.
Portfolio Composition
Market Mood
- Evolving favourable liquidity scenario domestically & globally
- Positive trigger for the domestic markets
Portfolio Actions
- Planning minor rebalancing and profit booking to maintain desired asset allocation & capitalize on portfolio gains.
Election verdict boosts equities' rally
2014 - May
Nifty Change
Portfolio Change
Portfolio Narrative
Strong election verdict sustains equity optimism, but stock prices await ground-level initiatives from the new govt.
Event Fallout
- BJP won the election, absolute majority
- Strong FII flows continued
Portfolio Composition
Market Mood
- Expectations from the Narendra Modi led government is likely to be high
Portfolio Actions
- Increasing my equity holdings as the stock market will continue to perform well in the near future,
Equity market at a historical high
2014 - March
Nifty Change
Portfolio Change
Portfolio Narrative
Stock market surged on anticipation of a stable, pro-reform government post-elections.
Event Fallout
- Ease in inflation
- Strong FII buys
Portfolio Composition
Market Mood
- Renewed optimism in the equity market
Portfolio Actions
- Held on to the current composition with minor rebalancing and profit booking.
Currency crisis deepens
2013 - August
Nifty Change
Portfolio Change
Portfolio Narrative
Negative sentiment due to depreciating Rupee and rising inflation; adopting a defensive investment strategy.
Event Fallout
- Increase in Infaltion (6.1% in August 2013, from 5.79% in July 2013)
- Rupee depriciation
Portfolio Composition
Market Mood
- Currency woes continued to hit equity sentiments adversely
Portfolio Actions
- Maintaining current positions with exposure in debt investments.
Equity market came under selloff pressure
2013 - February
Nifty Change
Portfolio Change
Portfolio Narrative
Short-term volatility, but long-term investors seek value in selected stocks and sectors. Consider global and domestic factors in investment decisions.
Event Fallout
- Q3 GDP growth came at 4.5%, close to lowest in 10 years
- RBI expected to cut rates
Portfolio Composition
Market Mood
- Global & domestic factors affected investors’ confidence at large
Portfolio Actions
- Keeping the market volatility in mind, increasing positions in debt.
Expected govt. action domestic policy
2012 - June
Nifty Change
Portfolio change
Portfolio Narrative
Closely monitoring the macroeconomic indicators to make informed investment decisions.
Event Fallout
- Speculation on govt. reforms & potential foreign investments boosted market sentiments.
- Foreign inflows surged post Morgan Stanley's India upgrade.
Portfolio Composition
Market Mood
- Investor sentiments improve, boosting market.
- Macro indicators continue to send mixed signals - elevated inflation, volatile Rupee, & stagnant industrial production.
Portfolio Actions
- No changes considering current market scenario.
Rupee levels, a very big concern
2012 - May 2nd - May 23rd
Nifty Change
Portfolio Change
Portfolio Narrative
Macroeconomics looks challenging which negatively impacted market sentiment. Still optimistic in long term.
Event Fallout
- Depriciation of rupee, FII sale
- Proposed tax on cross-border transactions involving Indian assets.
Portfolio Composition
Market Mood
- Industrial output contracts, 9-year low GDP growth.
- Growth shocker rattles equity markets
Portfolio Actions
- No changes considering current market scenario.
European Banking Crisis Easing.
2012 - Jan 6th - Jan 23rd
Nifty Change
Portfolio Change
Portfolio Narrative
Equity witnessed a strong rally in the Indian market, this momentum is expected to continue as India remained an attractive destination for investors given its robust economic growth.
Event Fallout
- Expectations of easing of interest rates in emerging economies like China, India etc
- Improve in US Economic data
- Strong FII inflows drive top performance, in Jan'12
Portfolio Composition
Market Mood
- Indian equity markets had a phenomenal start in 2012, making it the best January in 18 years for equity investors
Portfolio Actions
- Started accumulating equity investments, as the market sentiments looked quite robust.
2G scam and European debt crisis
2011 - May to Dec
Nifty Change
Portfolio Change
Portfolio Narrative
nvesting in fundamentally strong companies that are less affected by external factors. High commodity prices and rising interest rates made debt instruments attractive.
Event Fallout
- Rising inflation and RBI's rate hike
- Rupee depreciation
Portfolio Composition
Market Mood
- Rising interest rates and high commodity prices remain a challenge
- On the political front, corruption charges continue to hamster govt. decision making
Portfolio Actions
- Rebalanced with debt and commodity investments. Holding on the equity positions.
Significant Surge in FII Cash Inflow
2010 - Sep 3 -Sep 11
Nifty Change
Portfolio Change
Portfolio Narrative
Increasing exposure to sectors that are expected to benefit from the ongoing economic recovery. It is important to maintain a long-term perspective and remain focused on their investment objectives
Event Fallout
- - Better than expected economic data
- - Strong fund flows into emerging markets in general and India in particular
Portfolio Composition
Market Mood
- - India remains few markets where growth is visible and the quality of companies is high.
Portfolio Actions
- Rebalancing from equity to debt.
Recovery of market
2009 - Nov 4 - Nov 25
Nifty Change
Portfolio Change
Portfolio Narrative
Indian markets have rallied alongside global markets. A mix of large-cap and mid-cap Indian companies across sectors such as technology, healthcare, and consumer discretionary have shown strong growth potential.
Event Fallout
- Global economy recovery
Portfolio Composition
Market Mood
- Supported by signs of a recovering global economy, global market rallied.
Portfolio Actions
- Lost upside gains by not holding position and shifting to early in debt.
Satyam Scam
2009 - Jan 6th - Jan 23rd
Nifty Change
Portfolio Change
Portfolio Narrative
It includes companies with strong governance practices. Managing the investments wisely in the current unpredictable market.
Event Fallout
- Mid caps bore the brunt of the damage due to a higher perceived risk of corporate governance.
- RBI cut the repo and reverse-repo by 50bps
Portfolio Composition
Market Mood
- Suspicion on the overall standard of corporate governance in India.
Portfolio Actions
- Mid cap stock prices have decreased, but continuing with the holdings. Decreasing stake in debt
Global Financial Crisis
2008 - Sept - Oct
Nifty Change
Portfolio Change
Portfolio Narrative
Equities Exuberance, last year had given 45% returns, global upbeat mood. Following the herd.
Event Fallout
- Subprime mortgage crisis - major crisis in the US financial system
- India lost 50% of market cap in a single year
Portfolio Composition
Market Mood
- Fear has set across global market
- Companies were finding it difficult to survive
- Challenging time with limited visibility of future
Portfolio Actions
- Equities lost 50% of value overnight. Held on to equities as sunk costs. Added more to Debt. Wrong time to add to debt.