Global Asset Class Performance I Balanced Adv Funds I Hold cash in the bank for the budget

Global Asset Class Performance over the past 10 years

Great chart to understand how todays winners are tomorrows losers and vice versa

• Markets had a much sought after correction globally with both Indian Indices and Nasdaq, with the latter closing below 18,000 levels

• Tech stocks had a good run up on better than expected results from Infy and Wipro (We have maintained that tech stocks are a good value gap play and not a structural play like old times. We would be suggesting partial profit booking on another 10% rise in these stocks if its within 3 months)

• This would be the first Modi government budget as part of a coalition and hence will be important to see the direction

• We recommend before the budget a) Get your asset allocation back on track as most portfolios could be skewed on equities and mid/small caps due to the massive up move and b) Keep money in the bank (not liquid funds as that will take 1 day for NAV allotment) for exploiting any potential downside during the week

• Despite tailwinds, market valuations don’t leave any room for headwinds which is a worrying scenario that demands a rebalance of the portfolio as mentioned above

• The rupee also trades at all time lows which is usually a precursor to market falls (though this factor is less impactful now due to lower dependence on FII’s)

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Our founder’s view in the Business Standard on how balanced advantage funds are great for investors during such times

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