Another financial year comes to an end. It has been an amazing year for the financialization of household savings in this country. Despite volatility in the global markets, India has relatively done better (though I would have preferred Indian equities to go down more ). But the equity market’s volatility, is not what gets my attention. Volatility is par for the course, if you are an equity investor. I am more fascinated by this narrative, that investors have become mature and are ready to ride out the interim volatility. They have also become focused on the long run. Well, I am not really sure. Hey, I am not a pessimist, in fact, we are quite the opportunistic optimist (if ever there was a term like that). Let me explain :

My favourite term, that I have been using all of 2021, is TINA.

If you are an avid political reader, I am sure, you would have heard of the term. TINA is nothing but ‘There is no Alternative’. Investing world currently suffers from that. Look at the four major assets (easily available to non-institutional investor); equity, debt, gold and real estate. You can add cash as the fifth option, though it really isn’t an investment option (though it is an asset). Debt returns are subdued. Real estate in the preceding 3-4 years has been flat (except in my city, Hyderabad). Gold has also been flat in the last 18 months. Savvy investors hate keeping cash and anyway in a hyperinflation phase that we are in, holding cash is akin to losing your principal.

So that brings us to TINA and hence equity has been investor’s preferred choice. However, cycles change, equity returns over the next 1-2 years might not be palatable for most, forward looking debt returns might go up, value buying in real estate might make it look attractive again. Like Mike Tyson said, ‘everybody has a plan, until they get punched in the mouth. It would be interesting to see how this pans out in the investing world.

This isn’t bad news for equity investors at all, in fact, it would provide reasonable opportunities going forward. However, nothing less than 5 years should be your investing horizon

P.S : As of now, I have kept cryptos out of this

Disclaimer: Any calculation shown in this post is only for illustrative purposes  and based on prevailing tax laws and the past performance of a fund or investment is not an indicator of it’s future performance. The data used in this presentation has been taken from several sources. Neither BuckSpeak nor any of its employees or Subir Jha vouches for the authenticity of the data. Investing in mutual fund comes with market risk. Please read all Scheme Information Documents (SID) /Key Information Memorandum (KIM) and addendums issued thereto from time to time information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund. Investment should be done in consultant with a financial planner/consultant, who would recommend products aligned to your needs and risk profile. There are no guaranteed returns.  Neither BUCKSPEAK NOR ITS EMPLOYEES, makes any warranties or representations, express or implied, on products offered and would be responsible for any losses from these investments. The company earns commission from Asset Management Companies when the user buys mutual funds. However, the recommendations on funds is not influenced by the commission earned