Assets Allocations: When the year 2020 ends, you should assess your asset allocation.
Year-end Assets Allocations: There are only a few days left for the year 2020 to end. When the new year i.e. 2021 is going to start, then it is important to assess your asset allocation or investment. In this context, you can change the strategy of your asset allocation at the time of arrival. Talking about the year 2020, it has been very different in terms of capital market and investors. The year started with a strong boom in the capital market, so at the end of the year the market is close to its record high. Although the market suffered heavily due to the corona virus epidemic for the next few months from March, but later recovery came. The effect of this fluctuation was seen from equity, mutual funds to investment in expensive metals.
30 percent return in 2020
1 lakh value this year: Rs 1,30,000
Talking about till now in the year 2020, gold has given 30 percent return to investors. Gold had closed at the end of 2019 at Rs 39208 per 10 gram level. Right now it is being traded around the price of 50000 rupees. However, gold reached its record high of Rs 56128 in August this year.
Due to the Corona virus epidemic, where the equity market began to decline since March, investment in gold as a safe haven increased. Gold crossed the 56000 level in August. However, since the recovery in the equity market, there has been some selling in gold. Gold has again intensified for the last few days.
44 percent return in 2020
1 lakh value this year: Rs 1,45,000
Talking about silver, this year has seen a strong rally. So far, silver has given a return of about 45 percent this year. Silver has benefited from safe haven demand throughout the year. Gold silver ratio had crossed 100 in March. After this, there was a huge purchase in silver. In August, silver crossed the price of Rs 76000 per kg. However, since then, it has been trading at a discount due to a return in equity.
Silver closed around Rs 46750 at the end of 2019, while its price is currently hovering around Rs 66866 per kg.
Returns in 2020: 12.11 percent
1 lakh value this year: Rs 1,12,110
Talking about SENSEX, so far this year, investors have got 12% return. The Sensex is currently trading at a level of 46295. Since January 1, it has gained about 5000 points. The Sensex had earlier set a record high in February, but due to the COVID 19, it fell drastically and reached a low of 25639 in March. However, recovery has started in it since July. On December 21, the Sensex touched an all-time high of 47055.69.
Returns in 2020: 11.35%
1 lakh value this year: Rs 1,11,350
The Nifty has given more than 11 per cent returns to investors so far this year. The Nifty is currently trading at the level of 13549. Since January 1, it has gained about 1380 points. The Nifty moved to 7511 in March after setting record highs in February. However, in December it made an all-time high of 13778.
Due to this year’s mid-century Kaserona virus, the returns of mutual funds for 1 to 3 years had deteriorated. But with the rise in equity, once again money has started increasing in mutual funds. Talking about this year, most of the returns in Kategiri have improved and gone into double-digit.
In equity, large-cap, midcap, smallcap segment, where 11 per cent, 21 per cent and 26 per cent returns have been received, multi cap and large and midcap have 11 and 12 per cent returns. ELSS yielded around 12 per cent. Talking about debt, 12 percent and 10 percent returns have been received on long durations and mid to long durations. Mid, short and low durations have yielded 7 per cent, 9 per cent and 6 per cent returns. Around 4 per cent returns have been received in the liquid fund. Dynamic and corporate bonds have given 9 to 10 percent returns.
FD (Fixed Deposit)
Average return in 1 year: 6.5% (average of different banks)
Value of one lakh in 1 year: Rs 1,06,500
Return in 1 year: 7.9 percent (1 year ago rate)
Value of one lakh in 1 year: Rs 1,07,900
2021: What should investors do now
Experts and brokerage houses are saying that the market will continue to rally in the year 2021. In a recent report by Morgan Stanley, the Sensex could reach 50 thousand by December 2021. At the same time, BNP Paribas has also maintained an overweight rating on the Indian stock market for the year 2021. French International Banking Group BNP Paribas believes that the S&P BSE Sensex will be able to touch 50,500 in 2021.
According to the report, India is focused on strengthening the economy for the long term. Strong measures are being taken to increase demand. There is also an emphasis on investment measures. Another advantage is that there is more availability of quality stocks here. Companies’ earnings are improving. Further, the profits of companies will increase and the market cap of the market will increase. High-frequency growth indicators are looking strong. Government policy has been better, business activity is increasing in Indian companies. In this way, the possibility of better growth has been strengthened.
Ventura Securities head of commodities, NS Ramaswamy Gold is also bullish for next year. He has hoped for gold to accelerate to Rs 63000 in the next 1 year. In 2 years it can cost 65000 rupees. He says that there has been a significant decline in gold in the last 4 months and it has come down from 56100 level to 47800 level. He says that there is a rise in gold from the lower levels again and if it crosses the level of 53000 then it will increase further. Strong resistance of 56200 is seen ahead. When this level is crossed, gold can also see a further price of Rs 63000. At the same time, Ajay Kedia, director of Kedia Advisory, believes that silver can set its record high again next year. Amid the recovery in the economy, silver will benefit from increasing industrial demand.