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Pitchdeck04042025115808

The document discusses investment strategies in volatile markets, highlighting historical data that suggests high probabilities of double-digit returns following periods of low or negative returns. It emphasizes the importance of asset allocation, recommending a shift towards large-cap funds and multi-asset funds for better risk-reward profiles. Additionally, it notes that past performance indicates that when mid and small-cap stocks outperform large-caps, large-caps tend to rebound in subsequent periods.

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18 views6 pages

Pitchdeck04042025115808

The document discusses investment strategies in volatile markets, highlighting historical data that suggests high probabilities of double-digit returns following periods of low or negative returns. It emphasizes the importance of asset allocation, recommending a shift towards large-cap funds and multi-asset funds for better risk-reward profiles. Additionally, it notes that past performance indicates that when mid and small-cap stocks outperform large-caps, large-caps tend to rebound in subsequent periods.

Uploaded by

pranjalmajumdar24
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Investing in

Volatile Markets

Be fearful when others are greedy and


greedy only when others are fearful.
Turn Market Declines into Wealth
Creation Opportunities

Nifty TRI
Next 3 Year Returns

Less than 0% 0% to 10% 10% to 15% 15% to 20% 20% plus No. of Observations

Less than 0% 0.0% 14.4% 1.1% 20.0% 64.4% 90

Past 3 Year 0% to 10% 0.3% 31.1% 33.6% 20.5% 14.5% 1517


Returns
10% to 15% 1.9% 27.0% 32.0% 36.6% 2.5% 1110

15% to 20% 0.0% 32.0% 35.3% 26.8% 5.9% 541

20% plus 0.0% 55.4% 18.4% 15.2% 11.1% 343

Key Takeaway

When Nifty TRI’s 3 year CAGR is less than 0%, the next 3 year returns have been
more than 10% CAGR 85.6% of the time
When Nifty TRI’s 3 year CAGR is between 0-10%, the next 3 year returns have
been more than 10% CAGR 68.6% of the time
Currently Nifty TRI 3 year CAGR is ~10%. There is a high probability of double digit
returns in the next 3 years based on historical data

Nifty CY Next 3 Year


Year CAGR
Returns

2000 -14.7% 14.2% Key Takeaway

2001 -16.2% 25.2%


When Nifty’s Calendar year returns are

2002 3.3% 37.4% less than 10% or negative, the next


3 years have given 10%+ CAGR
2004 10.7% 43.4% historically

2008 -51.8% 16.0%


Markets are pricing in a muted 2025,
2011 -24.6% 21.4% with returns expected to stay under 10%

2015 -4.1% 11.0%


This is a good opportunity to deploy
2016 3.0% 14.1% money in the markets and Top up your
SIPs
2018 3.2% 16.9%

YTD 2025 -0.6% ?


Markets in Downtrend - Where’s the Safety Net

Nifty 50 Valuation below 5 Year Median PE

Source: Screener.in

Nifty Midsmallcap valuations higher than 5 Year Median

Source: Screener.in

Key Takeaway

Largecap Funds are better placed in terms of Risk Reward


Prefer Large & Large Cap oriented Flexicap Funds from here on

Wealthy Select Large Cap Funds Wealthy Select Flexi Cap Funds

Fund Name Fund Name


Largecaps - A wise choice in this Market

When Nifty MidSmallCap 400 index beats Nifty Next 3-Year


100 by 5% or more in the previous 5 years Returns

Total Observations 629

No. of times MidSmallcap 400 BEATS Nity 100 34.7%

No. of times MidSmallcap 400 UNDERPERFORMS Nifty 100 65.3%

Average Return (MidSmallCap 400) 7.71%

Average Return (Nifty 100) 10.16%

Average Excess Return -2.46%

Source: Personalfinance.in

Key Takeaway

Historically, When Mid & Smallcaps beat Largecaps on a 5 year basis by 5%


CAGR or more, Largecaps outperform in the subsequent periods
Currently Mid & Smallcaps are beating Largecaps by 10% CAGR over 5 years
Exercise discretion and realign portfolios towards Largecaps if the concentration
is high in Mid & Smallcaps

Wealthy Select Large Cap Funds Wealthy Select Flexi Cap Funds

Fund Name Fund Name


Asset allocation is an Important Driver
of Long Term Wealth Creation

Past Annualised Returns


Max Min 1Y Max 1Y
Portfolio
Drawdown Return Return
1Y 3Y 5Y 7Y 10Y 15Y 20Y

Equity 70% : Debt 15% :


14% 13% 15% 13% 11% 12% 14% -40% -35% 75%
Gold 15%

Equity 50% : Debt 25% : -21% 63%


18% 13% 14% 12% 11% 11% 14% -27%
Gold 25%

Equity 30% : Debt 35% :


20% 14% 13% 12% 10% 11% 13% -16% -8% 53%
Gold 35%

Ind Equity (Nifty 50 TRI) 10% 12% 16% 13% 12% 12% 14% -59% -55% 110%

US Equity (S&P 500 TR) 32% 18% 20% 18% 18% 19% 14% -45% -33% 71%

Debt 8% 6% 6% 7% 7% 8% 7% -4% 0% 15%

Gold 43% 22% 17% 16% 12% 11% 14% -29% -20% 78%

Source: Fundsindia

Key Takeaway

Multi Asset Funds are a One Stop Solution for hassle free asset allocation

Balanced Advantage Funds are a good option if investors already have physical
gold exposure

Wealthy Select Wealthy Select


Balanced Advantage Funds Multi Asset Allocation Funds

Fund Name Fund Name


Disclaimer

All information in this document is for informational purposes only

WealthyIN has used information that is publicly available. However WealthyIN


does not warrant the accuracy, reasonableness and/or completeness of any
information and does not take responsibility of updating any data/information.
For data reference to any third party in this material, no such party will assume
any liability for the same. All data/information used in the preparation of this
material is dated and may or may not be relevant any time after the issuance of
this material

WealthyIN and any of its officers, directors, personnel and employees, shall not
be liable for any loss, damage of any nature, including but not limited to direct,
indirect, punitive, special, exemplary, consequential, as also any loss of profit in
any way arising from the use of this material in any manner

Nothing contained in this document shall be construed to be an investment


advice/recommendation or an assurance of the benefits of investing in Mutual
Funds. Recipient alone shall be fully responsible for any investment decision
taken on the basis of this document

Mutual Fund investments are subject to market risks

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