I would like to draw your attention to the appended information.

Major stock indices are close to highs, but the economy is at lows. The indices have become highly polarized. Around 15 stocks are driving the index. Rest of the broader markets reflecting the pain in the real economy.The recovery in economy will take its own time.

Outlook on Asset Classes:

As always one needs to give due importance and follow Asset Allocation. You have seen the advantage of the same in the last many years. It helps to earn better risk adjusted returns.

Considering the current valuations ,Lump sum amount can be invested in asset allocation funds and debt. Value category under performing since couple of years. Lumpsum can be considered based on one’s asset allocation.

SIP and STP’s in equity funds for long term goals.

Intermittent corrections need to be utilized to add lump sum in staggered manner.

Some of the high quality names are trading at high valuations. Be cautious while investing in such names. The reason the underlying earnings growth will not justify such valuations. Barring those rest of market is fairly valued.

Debt: With the pause by RBI in cutting rates the yields moved up more than 30 bps. The 10 year gsec yields factored missing fiscal deficit target by govt to a great extent. It is a great asset class to be invested in lumpsum particularly for higher tax bracket investors.

Gold: Traditionally majority of them own it in jewellery form. It acts as a hedge against geo political tensions. in one’s overall portfolio not more than 5-10% can be allotted to it.

I would like to draw your attention to fraud calls coming to investors from locally and other parts of the country. Do not entertain such calls,promising higher and guaranteed returns.

With the recent karvy episode I request to spend 10-15 minutes every month and go through the NSDL or CDSL statement to verify your stock holdings .

Do let me know in case of any further information.