Amid the recent fall in the Indian market by a 4.5% decline (Nifty 50 Index), on the premise of volatile geopolitical dynamics, you may be feeling anxious about your portfolio's performance and overall investment strategy.
Your Portfolio Performance
While the Nifty 50 has dropped by 4.50% over the past week, your portfolio has only declined by -1.20% to 0.80%, generating an additional alpha of approx. 3.00% to 3.50%. This highlights how a selective diversification strategy is effectively shielding your folio from market volatility.
What’s Driving Your Folio’s Resilience?
Over the past year, we have steered your investments into more stable sectors that are less vulnerable to recent market volatility. These sectors were selected for their fundamental strength and ability to withstand economic fluctuations, ensuring they remain resilient while still offering strong growth opportunities. Here are the sectors:
Pharmaceuticals: India’s global leadership in generic drugs and a robust export demand provide this sector with strong defensive characteristics.
Healthcare: Rapid expansion in the healthcare sector, coupled with increased digital adoption, makes it a resilient choice during turbulent times.
Technology: As a global leader in IT services, this sector benefits from strong demand for digital transformation and AI solutions, providing consistent growth.
Consumption: India’s consumption sector, driven by its large, youthful population, is a crucial pillar of economic stability. Rising disposable incomes and urbanisation are boosting demand for everyday goods and premium brands, ensuring the sector's resilience even amid market turbulence.
Effective Investment Strategies
To further safeguard your portfolio, we’ve employed three key strategies:
Value Investing: By focusing on undervalued companies, we seek potential gains without exposing you to excessive risk. This strategy allows to capitalise on market inefficiencies and position your portfolio for long-term compounding.
Multi-Asset Strategy: Diversifying your investments across various asset classes minimises volatility and enhances stability. This approach helped to balance risk and return, ensuring that your portfolio remains resilient.
Long-Short Strategy: This approach has allowed us to hedge against market downturns by shorting overvalued stocks, helping mitigate losses while identifying selective growth opportunities.
Proactive Rebalancing
Every adjustment made to your folio is designed to maintain low risk while maximising growth potential. Regular rebalancing helps to align your investments with changing market conditions and your long-term objectives. This ensures your folio is prepared for current and future opportunities, keeping you on track towards achieving your financial goals.
In Summary
During these fluctuating times, it’s crucial to remain focused on your long-term objectives. Your financial well-being is our top priority, and while market ups and downs can be unsettling, the strategies in place are designed to help your portfolio stay strong and resilient.
If you have any questions or would like to delve deeper into your portfolio's performance, please don’t hesitate to reach out. Your peace of mind are paramount, and we’re here to support you.
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