There are many queries on the kind of investment mix that one should have for 2013. Some thoughts:
Both Equity and Fixed Income looks good into 2013. While Fixed Income is expected to sutain its gains into end of 2013, the confidence on Equity assets is not that high given the issues on macroeconomic environment in India. The underperformance in 2011 (extremely weak) and outperformance in 2012 (very bullish) was triggered by FII play. Any sign of improvement in western markets will cut the liquidity into emerging markets. So, it may be prudent to have higher allocation to Fixed Income assets at 50% (longer tenor for 5-10 years for better annualised return) and 35% for equity assets. Fixed Income investments needs to be passive (to ride the rate reversal cycle) while need to stay fleet-footed on equity assets.
For higher yield pick-up on entire portfolio, it would be good to allocate the balance 15% of cash as margin (with maximum 5 times leverage) to play on currency and commodity assets. There will be plenty of opportunities in this space if one can stay prudent overcoming fear and greed!
Good luck................Moses Harding
Both Equity and Fixed Income looks good into 2013. While Fixed Income is expected to sutain its gains into end of 2013, the confidence on Equity assets is not that high given the issues on macroeconomic environment in India. The underperformance in 2011 (extremely weak) and outperformance in 2012 (very bullish) was triggered by FII play. Any sign of improvement in western markets will cut the liquidity into emerging markets. So, it may be prudent to have higher allocation to Fixed Income assets at 50% (longer tenor for 5-10 years for better annualised return) and 35% for equity assets. Fixed Income investments needs to be passive (to ride the rate reversal cycle) while need to stay fleet-footed on equity assets.
For higher yield pick-up on entire portfolio, it would be good to allocate the balance 15% of cash as margin (with maximum 5 times leverage) to play on currency and commodity assets. There will be plenty of opportunities in this space if one can stay prudent overcoming fear and greed!
Good luck................Moses Harding
No comments:
Post a Comment