smallcases are model portfolios of stocks/ETFs based on a theme, idea or strategy. They are modern investment instrument for investors to build a low-cost, long-term diversified portfolio.
smallcases are created by SEBI registered professionals. smallcases have brought a lot of flavor to investing as they are created across various strategies, market segments, sectors, and risk profiles.
How can one achieve financial freedom? Is it possible for you to retire from your 9 to 5 job within the span of few years? Will you be able to travel the world and celebrate financial success?
And if so, how do we achieve this from the current Bull Run?!
Many investors at the smallcase, asked our fund managers, “considering the current bull run, what are the things that one should do to take care of our investments and achieve financial freedom in the long run?”
This is what they had to say.
Here are 6 Golden Rules, from 6 wise smallcase managers.
Following the Trend
In a bull run, you get the most out of your investment by betting on cyclical sectors and smaller stocks. Following the trend can be very rewarding. Along with the high-risk bets, one needs to be tactical in shifting allocation as the market shifts.
Our momentum and small caps portfolios were born to cater to the bull market and these portfolios have tight risk control to tackle volatility as well
-Sonam Shrivastav, Wright Research
Wright ?? Momentum
The Winning Obsession
“Winning is a function of obsession. It cannot be done by giving a part of your time to the market. Financial freedom will come easily if one devotes and immerses oneself completely in the equity market.
So, get obsessed with investing and BIG ideas will come to you. Just ride those ideas for many years and let them compound.
My big idea is that technology stocks will have a structural bull run for many years. I am riding this theme and also focusing on Special Situations. A mixture of these 2 themes should create wealth over a period of time.
A lot of pain and sacrifice is required to really win. But, it is possible for everyone to win.”
-Neil Bahal, Negen Capital
Negen Opportunistic SIP
Be very cautious of what you pay. Look for value and growth. Stay with performing business, and most importantly ‘avoid junk’.
Do not get swayed by momentum. This is my advice to investors who want to achieve financial freedom.
Jiten Parmar, Aurum Capital
Cyclical Bets Portfolio
Stick to your particular Investment Style
The biggest predicament facing investors, especially the ‘Robinhood’ Investors is that of FOMO (Fear of Missing Out), despite the fact that most of them would have made fabulous profits.
They don’t want to miss out on a further rally, thus remain invested, reinvesting the profits made in this bull run, as well shifting from our asset classes to equity.
With the continued extension of lockdowns and restrictions across most economically important states along with a downward revision of growth forecasts and more to come, the bull run in the stock markets exhibits a perfect dichotomy.
The markets could move up further as liquidity can create a bigger bubble, however, it would be prudent to reduce exposure. For most, it would be difficult to sell at a lower price after having witnessed a top, thus will be left holding the baby when the music stops.
To create wealth in the long term, one needs to stick to asset allocation, however in times of euphoria, increasing the cash levels becomes important.
Investing is a very personal game as it is dependent on the investor’s mindset. What works for one may not work for somebody else. Stick to an investment style you are comfortable with. Don’t blindly chase a different style just because some else seems to be minting more.
Greed can throw caution to winds. It’s more important to decide when to exit than when to buy.
In a Bull Market, “Looks Good” is the most heard reason or logic to invest but it’s always prudent to go a bit deeper and understand the company before you put in your hard earned money.
Underdogs too will shine
Disciplined Periodic Investments
Keep investing periodically irrespective of bull or bear market in a risk-managed portfolio. With proper risk management. You can withdraw up to 2% every month without worrying about anything. You are financially free and that’s it.
-Ashish Shekhar, Prudent Cap
Momentum with safety
Set Realistic Goals
The rules relating to securing your investments and achieving financial freedom are the same irrespective of the external market environment. Set realistic goals, draw up a plan, take advice when required and have a laser-sharp focus on execution.
There are no good markets or bad markets, there are only good investors and bad investors.
Soumitra Sengupta, Lamron Investments
smartvalues – basic
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.