Sunday, January 4, 2015

Our Outlook for 2015

First of all on behalf of AIMS, let me take this opportunity to wish you and your family a very happy and prosperous 2015.
The year gone by
2014 was an excellent year for all our investors. It was a year wherein both Equity and Debt markets performed well. The portfolios of most of our investors are displaying a stellar report card (15 - 25% p.a CAGR), for which you only deserve the credit. Many of you who have remained invested for the last 4-5 years didn't see much appreciation in their portfolio till exactly a year back. But 2014 made the entire difference and last 4-5 years of under-performance has already been covered. That's exactly the nature of Equity as an asset class. In investments, it is not your thinking that makes big money, it is sitting---our guiding philosophy which has been vindicated again.
"What is good for the client is also good for the firm" - T Rowe Price.
This is the philosophy with which Ace Investment Management Services was born 15 years back. Just like your portfolios have done exceedingly well, our report card also looks fairly dashing. Our assets under advisory have increased by nearly 50% in the last 1 year, thanks to your belief in us. Our SIP book is growing strongly and we are really happy about this as for long we have been advocating that SIP is the best way not only to make your money work harder than you do but also to create long term wealth.
It has also been our belief that the base of any investment portfolio has to be strong--by way of term insurance/personal accident insurance and health insurance. Health, they say is wealth. We have always believed and still do believe that insurance is more important than investments and it has to be given first priority.
Our Outlook for 2015
2014 was also a landmark year as far as the political mandate is concerned. After a good 30 years we now have a single Government at the Centre and the focus of Modi administration is clearly on development. The work has already begun and we believe 2015 will be a crucial year wherein many more reforms will be unleashed which will put India into a high growth trajectory.

Will we be benefited by this? Of course yes. When economy does well, can equity markets stay far behind? In 2014, Sensex has delivered a stupendous return of 30%. This was long overdue as markets have been quoting at below the fair valuations for the last 2-3 years. We hope the momentum will continue, though the strike rate may be higher / lower depending on various factors like short term sentiments, liquidity, global markets, crude prices etc. 2015 will also be a great year for Fixed Income investing. The rally started in the 2nd half of last year and is likely to continue this year on the back of the falling interest rates. We can expect double digit returns in Bond Funds in 2015 and also may be in 2016.
So what you should be doing?                 

Just maintain asset allocation. Have Patience and Discipline. Stick to your financial goals. Invite us once in a while for a cup of green tea or coffee though.
Basically, just chill and party hard (Your money is already working harder for you!!!)
Have a Rocking 2015!!!