Here are some questions asked by the viewers in the Investment Satsang dated 19th March 2021. These questions can provide you insights on some grounds. Please read these questions for knowledge purposes only and make any investment decisions only based on your research or the advice of your financial advisor.
From a diversification point of view, 10%-15% allocation towards the US stocks can be good.
Q Reading Value Investing by Mr. Parekh, writes that by investing at peak of markets we miss speculative returns. Your take?
Normally, when markets trade at a peak, so lumpsum investment could not meet your expectation.
In peak, it is better to go through staggered investment and not with lumpsum.
One should look at the reports of the rating agencies, regulators, industry outlook, Government targets on the industry, etc.
Then one should look at the players of the particular industry.
LIC IPO will certainly impact HDFC Life and other life insurance companies post issue as it will be listed with heavy market capitalization.
An investor can buy only that many shares that are available in the market.
It is quite possible, there can be a hostile takeover. For Ex. L&T Infotech and MindTree.
SIP is not with brokers, it is directly with AMCs. Brokers just facilitate transactions. Yes, they are safe.
Q Your views on ITC and United Spirits?
Both stocks have good earning visibility as involve consumption story.
ESG parameter is the only matter of concern here.
Commodity follows a cyclical pattern. One should be aware of such cycles.
From a diversification viewpoint, some allocation on commodities is good.
Debt allocation includes PPF, EPF, Debt Funds, etc.
While looking for Debt funds one should look at rising yields. If yields are rising it is better to stick with low-duration funds or with floating interest rate funds.
If you have stocks that went up 3-5x, then if you are doing an investment to attain some goal, and with this growth, it may have achieved the goals as well. So it will be better to park your funds into the debt side now for capital protection.