BT Markets Online Survey: Biggest lessons of Samvat 2079 and check investment mantra for next year

Samvat 2079 is bidding adieu and Samvat 2080 is just a few hours away. The last 12 months for Dalal Street have been a mixed bag for the investors where broader markets outperformed the headline peers, which rose to 9 per cent in the current Samvat. Indices gauged to second-rung counters surged 34 per cent in the year.

However, there have been some key lessons that investors can note and be ready for the next one before making their investment decisions.  Market veterans suggest investors to stay invested with discipline, sound approach and focus while putting their hard-earned money in Dalal Street.

Here's what they advise:

Tanvi Kanchan, Head - Corporate Strategy at Anand Rathi Shares and Stock Brokers

The biggest lesson for investors in Samvat 2079 was that the market returns are not linear and, thus, one should not have a short-term view of the equity markets. It is anticipated that Indian equities will continue to exhibit superior performance for the next several decades as well.

For Samvat 2080, investors who have a minimum investment horizon of one to two years, allocate a portion of their portfolio to Indian equity assets, preferably by collective investment schemes like mutual funds. The precise distribution in equities, nevertheless, would be contingent upon the investor's risk tolerance and expected rate of return.

Anshul Arzare, Joint MD and CEO, YES Securities India

The biggest learning from Samvat 2079 was that to stock your allocation around asset classes is always rewarding. The market had been volatile, and investors had to navigate through various challenges and quality stock picking is key as it is rewarding to take assistance from experts.

The mantra for the upcoming Samvat 2080 is to continue investing, remain invested and cancel out the macro noise to avoid short-term volatility. Discipline and patience are key to wealth creation and investors should focus on picking quality stocks in a volatile market rather than timing the market.

Arpit Jain, Joint Managing Director at Arihant Capital Market

The big lesson from the past year is that small and mid-sized companies made a comeback in the market. Just six months ago, many investors weren't interested in these stocks. The investing tip for the next year is to keep expectations realistic and grab stocks when prices drop. Stay alert for chances to buy because the market can change.

Santosh Pandey, President & Head, Nuvama Professional Clients Group

Look for themes where investments are happening like currently there is a huge focus on renewables, power, road and metro infra. Buy companies with strong cash flow, reasonable growth along with return on capital employed shall be more than 20 per cent.

Satish Menon, Executive Director at Geojit Financial Services

Midcaps performed better in 2079 than anticipated and volatility is the core inbuilt mantra for investing in equity. A constant revaluation of the stocks, economy, industry and qualitative factors like behavior research and geopolitical situation is necessary to assess the position of a portfolio.

After assessing key parameters like bond yield, inflation, and valuation, if you notice there is a change in the risk to your portfolio, then it would be ideal for you to churn your stocks between industries and asset classes. Our focus for next year is on large caps with a focus on domestic demand like consumption, manufacturing, infra and energy.

Shrey Jain, Founder & CEO, SAS Online

Samvat 2079 taught two key lessons- buy growth at attractive prices. For two consecutive years, PSU stocks with strong revenue visibility and reasonable valuations did well. Markets were quick to recognize the change in fundamentals after a long gap of almost a decade. Samvat 2078 performance of PSU stocks was not a fluke. Even in a raging bull market, always allocate some money to gold to tackle uncertain times and contain the downside.

The mantra for investing for Samvat 2080 will be to buy businesses with a track record of strong execution and sound balance sheets. Steer clear of fancy stories. There are no guarantees in stock markets.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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