Since the end of the previous quarter when the Indian stock market landscape had fallen to its lows, the Global financial markets have since vaulted to a near three-month high on hopes of further easing in social restrictions around the world. The recovery in business activity too can be seen as governments slowly restart their economies. Various global cues such as pickup in US payrolls in employment, strong Asia-pacific numbers, production cut of oil per OPEC meetings and others have rekindled hopes that the slump may not be nearly as bad as it looked and could soon give way to a sharp recovery.
Indian benchmark indices too have been on a tear lately. The Nifty since March 30th has shown a remarkable 19.57% rise. Foreign Institutional Investors who had deserted the market early March after massive withdrawals are back in full force as they have since invested Rs 23,000 Crore in the past seven days. Purchases are higher in India than in South Korea and Taiwan who have fully eradicated positive COVID-19 cases, thus showing the strength of the Indian markets globally.
We, at Vivekam strictly adhere to the principles of value investing. The market overreacts to good and bad news, resulting in stock price movements that do not correspond to a company’s long-term fundamentals. This behavior though is temporary, good companies will always prevail in the end. Same is the case with Vivekam, while there may have been speed-bumps along the way (SEBI’s MF reclassification) which has dented the whole Indian investing landscape for the past 20-months, a sound system backed with strict adherence to principles will always prevail.
Since March 30th, our Lumpsum (BIO-Growth) and SIP (SMILES-Growth) have truly trounced the markets.
Our products have outperformed the Nifty in nearly 97% of all cases. No, these are not manufactured numbers but rather real client portfolio’s that we can show evidence of in your next meeting with us. This signifies that our principles are definitely valid and even in the midst of the rapid rise in the Nifty, we were able to beat it. On Average, portfolios have outperformed the Nifty by 11.5%. With maximum outperformance for some being much higher.
With the current pace of easing restrictions across the globe, any economy that will have majority of its citizens rearing to go back to productive work will likely bounce back faster than other rich economies. India stands tall on this front and when majority of the population gets back to work and starts being productive again, there will be an uptick in economy. Backed by surging demand that has been elusive for the last three months, companies are expected to improve their top-line and bottom lines significantly. Capital markets are set to remain buoyant and many of the beaten down stocks will be sought after. In the midst of these developments, Vivekam’s value buying principles shall help investors reap rich rewards in comparison with Nifty or Sensex. The only caveat for this though is recurrence of lockdowns imposed by governments.
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