What do we expect from 2021?

After 2020, it is even foolhardy to attempt answering this question but still there are some wishes and some expectations.

First what are our expectations?

We expect the conversations to move from the virus to the vaccine. The macroeconomic conditions will continue to be favourable with global central bankers holding rates down for the next couple of years. In India, the government should continue with its reforms.

During the last 2 years, the rally has been very narrow and hereon we expect the market movements to be more broad based. This means that the midcap and small cap space offers more value and growth. However, stock selection should be done with a lot of research and with enough diversification and hence, we continue to believe that mutual funds are well poised to beat their benchmarks and create alpha.

What does all the meant to investors?

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1. In 2020 alone, the Nifty is up by 15% but this came after a 40% fall and 80% rise.
2. Asset Allocation is key!
3. A SIP a day keeps volatility away.
4. Time in the market ALWAYS beats timing the market.

Together let’s make 2021 profitable.

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