12th Year

Wishing you and your family a wonderful 2018.

We never believe in forecasts, especially of short term. In the beginning of 2017, there were many predictions that markets would do badly due to demonetisation. GST implementation strengthened these voices further. However Sensex has delivered around 28% return in 2017. As a policy, we don’t make any index forecasts and would stick to the same for 2018 as well.

If past is anything to go by there are more good years than bad years. Roughly markets are up 70% of the time.  Need to stay invested during the 30% bad years as well, to reap the benefit of good years.

As our clients, you all have created significant wealth. This would accelerate in the years to come. We hold views based on broader picture. India’s GDP per capita would continue to grow over next decade and this would result in many companies doing well. When companies do well, earnings would grow. Growing earnings would get reflected in stock prices and hence in mutual fund NAVs.

We believe that there is huge potential for wealth creation over next decade though the ride, as always, would be bumpy. You’ve been sticking to your investments despite bull and bear markets, positive and negative news flows and your own emotions of greed and fear. Once we buy right, all we need to do is to sit tight.

We are entering into 12th year of our profession today and are grateful to you for being our client.

Though we started the profession in January 2007, it took around 3 years for us to get our focus right. We then realised investor management is more important than investment management. Choosing investments or making portfolio changes is only 10% of the work. 90% is focusing on investor management, which is managing behaviour, emotions and psychology.

By helping you focus on what is important, we’re able to make you achieve excellent results. Through all our communications and interactions, we would continue to focus on investor psychology and behaviour.

Good investing is very simple. It is like daily exercise or consuming good diet. Though these are simple to understand, very difficult to implement on a consistent basis. Our focus would continue to be making you do these simple things consistently. Simple and right discipline, when repeated regularly, would lead to exponential results.

Be it health, wealth, career or relationships what we do everyday matters. To quote Darren Hardey

“You will never change your life until you change something you do daily. The secret of your success is found in your daily routine.”

Stick to simple and effective discipline. Keep reinforcing it regularly. You’ll then be successful in whatever you focus.

Once again, wishing you a great 2018.