Please find below the 5 charts that tell interesting stories on Markets and Investing.

 

1) Multibagger Equity Mutual Funds:

 

1) Nippon India Growth Fund has become 242 times in the last 27 years.

 

2) Franklin and HDFC Equity funds with a track record of more than 20 years have also become multi baggers.

 

Making wealth is easy - Just invest in some good equity funds and forget them for 20 years.

 

 

2) How to invest like the Top 1% of Investors:

 

1) Top 1% of investors hold 43% of total stock market and only 13% of all Real Estate.

 

2) Bottom 90% of investors hold only 11% of all stock market but 90% of all Real Estate.

 

Top 1% invest heavily in Equity and less in Real Estate.

 

Data for US Investors.

 

 

3) Mega Cap Tech stocks are undoing much of the damage done in 2022:

 

1) In 2022, majority of the US Tech stocks were down by 30%-50%. Investors were predicting doomsday for them.

 

2) In 2023, all of them have made super bounce back with a return of 50%-200%.

 

Invest when its a doomsday. For investment, there is no better day than a doomsday. 

 

 

4) Best Asset Classes for Investment:

 

1) Major asset class moved higher in 2023, opposite of 2022.

 

2) Bitcoin & Nasdaq have been the most consistent top performers in the last 10 years.

 

3) Commodities, Cash, TIPS & REITs have all underperformed in the last 10 years.

 

4) Gold & Emerging Markets (Excluding India) have struggled.

 

 

5) India vs Emerging Markets - Big Valuation Gap:

 

Indian equity market is trading on a Cyclically Adjusted PE (CAPE) of 28.3x or one standard deviation expensive to the two-decade average.

 

Emerging Markets is trading on a CAPE of just 10.9x or one standard deviation cheap to its long-term average.

 

This is creating big headwinds for the current rally of Indian equities.

 

FIIs may star investing heavily in other Emerging Market equities and let Indian equities take a breather for a while. 

 

 

Read more similar articles in our blog - https://alphacapital.in/blog/

 

Best Regards

 

Dr. Mukesh Jindal CFA, CFP, CAIA, Ph.D.

Alpha Research