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

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It’s review time

Posted by Muthu on March 30, 2019

Other than our regular meetings and interactions, at the end of every financial year, we make it a point to send you portfolio reports along with our review.

Yesterday was the last working day of the market for the financial year 2018-19.

We would start sending your reports from next week and we hope to finish the task for every single client by end of April.

2017 was a great year and you all saw phenomenal returns. 2018 turned out to be a horrible year. But for the sharp recovery in the month of March, this financial year had a very bad time.

For long term investors, the portfolio returns look good. For those of you who started in the recent years, it is average to below average performance.

It’s election time and this is in the top of the mind for every investor. In the long run, markets are not influenced by politics. In the short run, sentiment and liquidity rules the roost. In the immediate future, election results would have impact on the markets. In the long run, what matters is return on equity and growth in earnings.

In the last 40 years of Sensex journey, it has seen all kind of governments; NDA, UPA and third front. The long term results you see are after going through multiple governments. I’ve no permanent affiliation to any one party or leader. Each election, be it parliament or assembly or local body; I’ve voted based on what I felt appropriate at that point of time.

Any government would have pluses and minuses. All I see is which one is more. This time I would prefer NDA government. I believe it is good for both the country and corporate India. None of us can be sure of who would form the next government till the last vote is counted. If NDA loses, it may impact market negatively for short term. In the long run, markets are politically agnostic.

Don’t worry about electoral outcomes. Your only focus should be on developing right behaviour and temperament. In your investing journey, you’re going to see multiple governments and prime ministers. They are not going to determine your investment results. The only deciding factor is going to be your behaviour.

Those of you who have invested during the recent years may be concerned by the lacklustre results. This too shall pass. Long term results would always be good. For time being, trust my words. In the long run, portfolio return itself would automatically convince you.

It’s all finally boils down to staying the course through ups and downs. The long term results are always rewarding.

All the very best for sticking to the course.

One Response to “It’s review time”

  1. Bhaskar Aglave said

    Hi Muthu,
    A very happy advisor’s day 31st March.
    May everyone have an advisor like you.
    Your musings are the best and most simplistic reads I have ever read.
    I think you should add needy clients like me.
    Have a great 2019- 20.
    Bhaskar, Pune.

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