Significant indexes in the COVID-19 epidemic ran more than 70 percent in FY 2021. During this period, more than 200 stocks included in the S&P BSE 500 index have more than doubled. Due to which the valuations of all the stocks are looking high and many investors are sitting on the sidelines waiting for the market to cool down.
However, due to recent rein in the market and indications of RBI maintaining a soft stance, the investors waiting on the sidelines may end and they may once again look to dive into the flowing Ganges of the market.
Keeping these in mind, investors are advised by market giants to consider asset allocation in their portfolios carefully and do not make too much allocation to high-risk asset classes such as equity and cryptocurrency in the hope of earning a lot in a short period of time.
5nance.com by Dinesh Rohira Told Moneycontrol that in the period of 1 year since March 2020 in the midst of the COVID-19 epidemic, the Indian equity market has given a return of about 78 per cent. This rally may have increased the weightage of equity in the portfolio.
He further said that as a seasoned investor, it is necessary to make asset allocation in the portfolio in the right and balanced manner due to long term wealth creation. The weightage of different asset classes in an investor’s portfolio depends on factors such as the age of the investor, the duration of his investment, the investment target.
After a strong market rally in FY 2021, experts are now advised not to expect any unexpected returns in 2022. From the perspective of returns, 2022 will be a normal year. The market will keep an eye on earnings recovery.
Here we are giving you suggestions of 3 giants to make the portfolio for FY 2022.
5nance.com by Dinesh Rohira Says that investing in Equity MF in FY 2022 will be beneficial for investors. Investors are advised to invest in index funds or ETFs.
Talking about fixed income options, he said that despite being in the headlines for the last few days due to many negative reasons, there are many such good fixed income schemes / NCDs that can stabilize your portfolio from the perspective of growth. Through this asset class, you will be safe in the event of market fluctuations. Such asset classes act as a hedge against the risk of equity.
Dinesh Rohira is also advised to invest in global equities. He said that global equities can be used as a hedge against the domestic market. Through these, investors can place bets in global companies with good growth potential.
Apart from this, gold should also find a place in the portfolio. Investment in gold-based schemes maintains stability in the portfolio when market trends are negative.
Gaurav Dua of Sharekhan States that asset allocation in an investor’s portfolio depends on its risk appetite and investment targets. But the general rule is that we should adopt 60/40 rules while building a portfolio. This means that 60 per cent allocation to the portfolio should be in equity and 40 per cent allocation should be in fixed income, gold and other interest based financial instruments.
He further said that despite the strong rally of 2021, there is still hope that in 2022, the performance of equities will be better than the other asset class. In the next 2 years, we will see double digit returns in the equity market.
Green Portfolio Services के Divam Sharma Says that in 2022, due to global liquidity, there will be a strong growth in emerging markets, especially in markets like India.
Divam Sharma recommends to allocate 50–60 per cent of the portfolio to domestic equity shares while 20–30 per cent should be allocated to global equities. Investors should focus on value stocks in the new year. There should be 10-10% investment in gold and fixed income asset class.
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