As we say good bye to 2014, we can say that it was one of the better years for the market in general. NIFTY has gone from 6300 to 8200, a 27% increase. If one were investing in NIFTY on a monthly basis, one would have realized a return of 14%.
This has been a good year for IndusWealth as well, the stocks we advised have returned 41.2%, (85.8% annualized) i.e., we have beaten the market (NIFTY) by 27%. A client who has invested one lakh a month in the stocks suggested by IndusWealth, would have 16.93 lakhs on 26th Dec, 4.93 lakhs in capital appreciation. If one had invested with the same money in a bank at 10% interest they would have 12.43 lakhs, i.e., 4.5 lakhs less than if they had invested in stocks advised by us, this is an opportunity loss of 4.5 lakhs. If the same money was invested in NIFTY they would have 13.69 lakhs that would be an opportunity loss of 3.24 lakhs.
Here is a quick snapshot of the monthly performance:
Pl click here download a spreadsheet with details of the 2014 portfolio.
We would like to thank our clients for their continued patronage. All the new clients who have come on board this year, we welcome you to the IndusWealth family.
As we were ramping up this year, the question we have heard most is– “Is this the right time to invest?” We believe the right question is “Am I ready to make long term investments with right expectations”.
A quick word of advice – please invest only when you are sure that you will not lose a good night sleep worrying about your investments, as no amount of money can buy a good night’s sleep. Please remember that markets have always had and will always have opportunities for the prudent and patient investors.
From an investment perspective, we find that 2014 was a tough year as many good companies were not good investments as they were significantly overvalued (at least in our humble opinion). We attribute a large part our performance to good fortune. Although a lot of effort has gone into stock selection, it is never a guarantee that we will reap the rewards the same year.
We look forward to the next year with cautious optimism, as many stocks and markets in general are expensive. We believe finding interesting opportunities to invest has become a bit more challenging. We believe we are up to the task to find prudent investment opportunities for long term investors and we promise to let you know if we believe that we are unable to do so.
As we continue to strive to make your money work for you. We wish you, your family and friends a very happy New Year and success in your endeavours.
In the spirit of New Year we will review 50 portfolios, based on a draw of lots on 26th January. If you would like to be participate in the draw please click here.