Over 81% of the 2,460 listed companies (with market caps greater than Rs.100 crore) delivered positive returns in 2023. While the majority of stocks making money in 2023 indicates strong optimism, it is also important to consider such returns with the associated risks, especially non-diversifiable risks. With domestic fundamentals expected to remain buoyant amid continuing capex programmes of corporate India and expectations of an interest rate cut in 2024, investing in stocks that generate positive alpha can improve overall portfolio returns.
Akshay is a senior management professional with a good salary, which includes a sizeable performance-linked variable pay. He has a portfolio of stocks, mutual funds, deposits and bonds, and is comfortably placed in terms of his financial goals. He thinks that it may be a good idea to buy a second property for price appreciation. His family thinks that a holiday home would be a good idea. What factors should Akshay consider while making a choice?
One PMS fund manager has forecast a target of 23,000 for Nifty by the time of general elections, but also anticipates a possible correction post-elections