Indian stock markets were the top performers among global peers as they scaled new records. Nifty closed the year at 24% while the Sensex gave 22%; S&P500 gave 27%.
BSE Midcap and Smallcap indices gained 39% and 63% respectively. The Total market capitlatization of Indian stocks rose to US$ 3.4Tn from US$ 2.5 Tn at the end of 2020. In 2021, a record US$ 1.18Tn was raised through 63 public offering; about 4.5 times that of prior year.
Most global markets gave positive return with India coming 3rd in global markets' performance.
Sensex Performance since 2001
Over the last 10 years but for a -5% return in 2015, the Sensex has given double digit returns in 6 out of 10 years!!
Diversification is Key
Rather than predicting which asset class will do well, the key is to ensure that you have allocations to relevant asset classes based on your risk profile. A diversified portfolio of small, mid & large cap Equities with International equities and a good mix of bonds with Gold is key to having an enjoyable ride through volatile market conditions.
Stay Invested and continue making your money work for you.
Source: Livemint, Trinkerr, Bloomberg