We are the end of the first quarter in financial year 2015-16, and we are happy to share the results of IndusWealth portfolio.
Starting December 2014, NIFTY had negative returns for five months in a row. The volatility in the market has been significant. In the last 12 months returns from NIFTY have lost out to returns from bank fixed deposits.
In last 12 months, if one were investing on a monthly basis in NIFTY the realized return would be 1%, IndusWealth portfolio returned 18.2% (36.5% annualized), beating NIFTY by 18 times. And beating bank fixed deposit return by 5 times.
Q2 2015 (2016 April to June) was a period where the P/E was close to 23. In this quarter IndusWealth portfolio is lagging NIFTY by 2.1%.
Results for IndusWealth can be downloaded from the links below:
- Summary of the returns
- Transactions in the model portfolio
- Stock wise returns for the model portfolio
- Performance against the benchmark for the model portfolio
We are glad that there has been a bit of correction in the market in the last couple of months, but earnings growth has been disappointing so the P/E levels remained the same inspite of a correction in the markets.
We are seeing some early green shoots with earnings of some firms improving. We expect the market P/E to correct and earnings to improve over a next 18 to 36 months.
We believe, this market is only for the people with long term horizon, as there could be significant volatility or long stretches of sideways movement in the market.
We believe that long term investors will continue to do well with a disciplined investment approach. We will continue to invest only if we find opportunities that we believe have a reasonable chance of doing well and have a safety margin.