30-Dec-2022
2 mins read
We are in the month of December and are in the last week of the year 2022 ready to celebrate and welcome the New year 2023. It has very interesting year for the people related to the financial markets where the benchmark index Nifty has generated around 4% YoY while many stock and investment-specific actions have been witnessed on regular basis.
In the past few months, financial markets have witnessed heavy volatility where we have seen the first phase of post covid era followed by the ongoing Russia-Ukraine war, soaring inflation, and the Fed rate hikes. Global markets and Nifty both have taken a heavy beating in the first half of the year but later covered well after the fears got faded as time got passed.
Indian Indices have done far better in comparison with their global peers and are the first in the world to hit fresh all-time highs in these testing times. Now the million-dollar question for the investors is how will be the road further as enter the fresh calendar year. The new year for domestic investors is starting with fears of a new coronavirus variant impact with the expectation of a kind of fourth covid wave in the country in January 2023 as per the recent statements from the health ministry. Then will come the big budget day in the month of February is expected to provide further direction to the markets.
Below are the key points to be noted by the Investors to plan their investments in 2023:
- Keep a track of Covid News globally
- Select the stocks which are expected to benefit from the budget announcements
- Fed Rate hikes and the commentary
- RBI Monetary policy minutes and announcements
- Government policies on the economy
- Russia-Ukraine War developments
- Inflation numbers globally.
In any investment strategy, the most essential ingredient is the temperament and the patience to hold on to the investment with a proper view whether in profit or loss depending on the related circumstances. While on the other hand, one should also have to track the fundamentals and the related news flows of the stocks which they are holding in their portfolios.
As far as the total portfolio is concerned, as a prudent investor one should not keep all eggs in one basket. One should keep the investment alternatives as per the risk-taking capacity and should have exposure to equity, debt, and precious metal for the upcoming new year as many uncertainties are reflected in the current scenario.
So, start the investment journey either by mutual funds or direct equities followed by some chunk in gold, silver, and debt to hedge the portfolio. On the other hand, regular tracking and adjustments in the portfolio are required as the markets nowadays are very volatile and the moves are also ferocious.