Kindly find the brief update on markets and other information related to investing.

In contrary to the expectations of market, all global markets witnessing strong rally after BREXIT.

Liquidity plays an important role on either side of market movements. With loose monetary policies adopted by developed world the money is flowing towards equity and debt in emerging markets like India.

More than USD 10 trillion worth of global bonds is giving negative yields. i.e, those invest in the bonds will not get any return, instead investors are paying the govt to borrow from them. People in Japan are buying safe lockers to keep money at home, as they need to pay money to deposit in banks.

In contrast the Indian 10 year govt paper offers around 7.2%.(at three year low) Good amount of global money is flowing to India. One needs to grab such opportunities wisely adhering to one’s asset allocation.

Those of you who started investing since a year back in SIP’s or as lumpsum do not carried away by the positive returns. Equity is a volatile asset class in the short term. There will be periods in your long investing journey where you may witness periods of underperformance.

Equity is a long term compounding asset creation tool and returns will not come in linear fashion.

Focus should be on your investment objectives which help in formulating a proper asset allocation. Getting on the plan is easy part. But staying on plan with emotions of the market is the hard part. As an advisor, I put sincere efforts to make you stay on your plan.

The most important quality for the same is being discipline; do not carried away by the greed and fear of the market. As mentioned in my several mails time spent in the market is more important than timing the market.

For some of you I had advised to exit underperformers, products like ULIP and partial profit booking from small cap funds to rebalance the portfolio.

Rebalancing of the portfolio to the target weights is almost always going against the crowd. The long term advantage of the same can be felt over a period of time.

Lastly I recommend to utilize the opportunity in Indian bond market by investing in debt funds as an alternative to fixed deposit and invest in equity with a long term horizon as per your stated investment objectives.

Many of you invested in debt funds since last 4-5 years have seen the advantage of it over the traditional investment avenues. Do share the same with your friends and relatives, so that they will also get benefit from the same.

Do let me know in case of any queries.

If you can’t control your emotions, you can’t control your money-buffet