How will the market be till next Diwali? Fund manager Sameer Arora shares details with Anil Singhvi
The small-cap index is up by 75 per cent and the mid-cap index is up by 65 per cent.
The market is life-time high and all the products are in demand this time. If we compare to last Diwali, this Diwali the earnings are around 60 per cent. The small-cap index is up by 75 per cent and the mid-cap index is up by 65 per cent.
In an interaction with Zee Business Managing Editor Anil Singhvi, Singapore's Helios Capital, founder & fund manager Sameer Arora believes that the investors are expected to yield less than 30% earnings till next Diwali.
He said: "But I would advise that investors should not see the markets like this. They should rather see the market in two ways - First, if they are putting their money in the market than other alternatives choices like fixed income, real estate, and even global should mint more than 10%. As the Indian market has a history of long-term returns of 15% pa. If you will see the past 25 years' returns, then it is 14% pa in the rupees."
Arora added that so if you think that the return is earned in 15% or more then it is good. But I will suggest not to enter the market with an expectation to earn 30% earnings.
He further added that if you will see last year's return then it is 50-60%, which seems too high as compared to the longer-term average. But if you will check the last 3 years returns of the index then they were 21% pa. Also, if you will check the last 5 years returns then they were 16% pa. This means the longer terms returns are not yielding that much. Last year's returns are extremely promising because the past four-year returns were below average."
Singhvi said that this is a sizable correction for new investors. Is this a beginning of the corrections, or is this running corrections, or is the market topping out? What do you think about the market directions?
Arora added: "I don't feel that the market has topped out yet. The market has been running well in the past 1 year. If compare it with 3 or 5 years. Second, if you will see the corrections of this month then month-to-date return is positive."
अगली दिवाली तक कैसा रहेगा बाजार?
कमाई के लिए किन सेक्टर पर करें फोकस?
किन शेयरों के साथ मनाएं इस बार दिवाली?
समीर अरोड़ा से सीखिए समृद्धि के मंत्र..
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He said that now also the stocks that are down, but they are actually 5-10% up in the intra-month. For now, we will count this as a normal correction. Second, normally the October-February period is considered as the best period for the markets. The reason: year-end excitement, sales, allocation of global funds, Union Budget excitement in India.
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