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Sensex high but not my portfolio….why?
 
The indices Sensex and Nifty are at all-time highs. However, most investors’ portfolios are not at all-time highs. Rather, a lot of investors are still feeling the pain of negative or low returns in their portfolios. Many might be puzzled and confused as to why are their portfolios showing negative or low returns when the markets are at an all-time high?
To understand this, we looked at the following data from S&P BSE:
 
Index YTD Returns
Sensex 11.34%
Sensex 50 9.32%
Sensex Next 50 -7.97%
BSE MidCap -9.63%
BSE SmallCap -13.43%
 
 



 
 
 It is easy to see that Sensex, which is the popularly followed index is showing 11.34% returns for the first seven months of the year. This is quite substantial. Similarly, Sensex 50 which is primarily Sensex 30 with additional 20 companies, is also showing quite large positive returns for the year.
However, the Sensex Next 50, which includes stocks which are large cap stocks but are smaller than the ones in Sensex 50, is showing negative returns of 8%. Similarly, the BSE MidCap and BSE SmallCap are showing still more negative returns.
Considering this, it is not surprising that most investor portfolios would be showing negative returns. In fact, except for the top 5-10 stocks a majority are in negative territory.
 
It is important to know that your equity schemes may comprise of various stocks in different proportions having different market capitalisation based on its category and objectives.
 
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Atul Mishra CFPCM, CWM, MFP, CII(Award), DipCISI
SEBI Registered Investment Adviser
(Registration No. INA000004245)
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This document represents the views of Amigos Finserv and must not be taken as the basis for an investment decision. We shall be not be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The material is prepared for general communication and should not be treated as research report. The data used in this material is/maybe obtained by Amigos Finserv from the external sources which it considers reliable. While utmost care has been exercised while preparing this document, we do not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). Amigos Finserv reserves the right to make modifications and alterations to this statement as may be required from time to time.
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