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Business News/ Markets / Stock Markets/  Lok Sabha Elections 2024: 4 investment strategies to follow ahead of election results next week
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Lok Sabha Elections 2024: 4 investment strategies to follow ahead of election results next week

Lok Sabha Elections 2024: As markets brace for Lok Sabha elections 2024 results next week, here are 4 basic and key investment strategies that investors need to follow as per Feroze Azeez, Deputy CEO, Anand Rathi Wealth Limited.

Lok Sabha Elections 2024:: 4 investment strategies to follow ahead of election results Premium
Lok Sabha Elections 2024:: 4 investment strategies to follow ahead of election results

Lok Sabha Elections 2024: As we enter the last phase of election season the nervousness is likely to set in ahead of  the election results next week, The investors however are advices to follow the simple and basic strategies as per experts  as Feroze Azeez, Deputy CEO, Anand Rathi Wealth Limited.

Investors should have an asset allocation strategy in place

This remains the first key. There is no one-size-fit all solution in investing however some standardization can be done through asset allocation, said Aziz.

Also Read- FPIs continue to dump financials, IT, FMCG shares in May. What lies ahead?

The asset allocation strategy should be based on factors like goals, horizon of investment, risk appetite and liquidity requirement.

While investing we need to build a strategy with the right asset mix based on our risk appetite to meet our goal. Debt and Equity have a low correlation and a combination of these two assets can help in targeting a return around 12% based on your horizon of investment, said Aziz. Equity funds have delivered an average return of 14% over longer tenure and Debt MF have approximately delivered 6% return.

Stick to asset allocation

Choose right asset classes and stick to them. Rebalance as and when required as per your asset allocation strategy

These portfolio mix can help in targeting respective return with calculated risk.

Invest across market caps for balanced returns

Nifty 50 and Nifty 100 are expected to deliver 15-16% earnings growth in 2024-25 while the growth of Midcap 150 and Small cap 250 are expected at 11-15%. Indian corporate profits are on a healthy growth path across the three segments.

Also Read- Lok Sabha Elections 2024: Market may see sharp 20% decline if election results deviate from expectations -Experts

Attractive valuations of Small Cap and fair valuation of Large Caps: Nifty 50 and Nifty large cap 100 are currently fairly-valued, there is froth in Nifty midcap 150 and considerable upside to Nifty smallcap 250.

Continue your SIPs - Timing in the market

The analysed 2 scenarios where Azeez has taken the investments of 2 investors of Nifty . When invested in peaks for 5 years the return came at 10.84%. nevertheless when invested regularly through SIP, the returns came 14.02%

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions

 

 

 

 

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ABOUT THE AUTHOR
Ujjval Jauhari
Ujjval Jauhari is a deputy editor at Mint, with over a decade of experience in newspapers and digital news platforms. He is skilled in storytelling, reporting, analysing and writing about stocks, investment ideas, markets, corporates and more. He is based in New Delhi.
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Published: 28 May 2024, 07:29 PM IST
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