Wise Wealth Advisors

D.Muthukrishnan (Muthu), Certified Financial Planner- Personal Financial Advisor

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Annual review

Posted by Muthu on March 30, 2018

As always, April is the month of annual review.

We would be sending your portfolio reports along with our notes and inputs.

We plan to complete the task by end of April.

This review is in addition to our meetings and interactions during the year.

Though we’ve given you online access, it would be good if you see your portfolio once a year. Lesser the frequency better would be the results.

Sensex has delivered 11.3% for the financial year 2017-18.

As far as debt is concerned, yields have hardened resulting in subpar performance.

Those of you who have invested during the recent past would see average to poor results.

For those who have been investing for long, the results continue to be good.

Short term is like weather. Not predictable. Long term is like seasons. Reasonably predictable.

Based on our experience and expectation, we are confident of good long term results. Those of you who have been with us for many years have been experiencing it through portfolio performance.

Emotions and liquidity influences short term performance. Fundamentals influence long term performance. Always focus only on long term. For equities, the long term is not less than 10 years. For hybrid like MIPs and balanced funds, long term ranges between 3 to 6 years.  Only for liquid funds, we can expect all time performance.

You’ll start seeing changes in the name of the funds you hold. This is being done by fund houses in line with latest SEBI guidelines. For the funds we’ve recommended, there has been no major changes in fundamental attributes and it is only change in nomenclature. So you need not worry about this.

Expense ratio for funds are being brought down by 15 bps by SEBI. In our view, this is only beginning and we may see more in coming years. Also as we wrote last year, due to TRI benchmarking and reclassification, we expect alpha to come down in the next few years. We would see more passive funds and ETFs coming into the being. We are keenly watching the developments and would suggest suitable changes at the appropriate time.

It is markets which give you results and not us. We are there to ensure you stay the course to receive the long term benefits offered by markets.

I’ve no new message to offer except asking you to stay the course.

4 Responses to “Annual review”

  1. D. Koush said

    “Emotions and liquidity influences short term performance.” – what an insightful sentence sir. This article is awesome.

  2. Suresh kumar said

    Sir, Do you giving advice on Equity (Shares) too!!!??

  3. George Samuel said

    I used to get a comparative chart on Fixed Deposit, Gold and Sensex from you regularly. I have not received one from you for the year 2017-18. Will you please send me the latest chart ? Thank you.

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