US Stocks Investment: Indian investors should consider investing in the US markets as part of portfolio diversification. This is to say that Emkay Wealth Management, the wealth management and advisory firm of Emkay Global Financial Services. According to the note, investors should invest their portfolio allocation in equity and debt in the ratio of 50:50 and out of the amount allocated for equity, 30 percent should be invested in US stocks. According to Emkay Wealth Management, the US stock market is providing better technology exposure which is not available in India.
Indian market is expensive!
MK Wealth Management said in its estimate, a slowdown in Nifty EPS growth is possible and it is estimated to be 7.9 percent in the financial year 2024-25. According to the report, the valuation of Indian markets has become expensive and consolidation or decline in the market is possible. According to MK Wealth Management, a rise in the markets is possible after the earnings of the companies increase. However, currently there are many stocks in the market which are providing investment opportunities, in such a situation PMS, AIF and Active Fund Managers can perform better.
Excellent performance of midcap stocks
According to MK Wealth Management, the market cap to GDP ratio of stocks listed in the Indian stock market has reached 1.4 or 140 percent this year, which is the highest in 15 years. This shows how expensive the Indian market has become. However, domestic investors are continuously increasing investment in Indian markets. Midcap stocks have performed the best in the long term.
Invest money in American stocks!
According to MK Wealth Management, Indian investors should diversify their portfolio by investing in the American stock market. In portfolio allocation, 50 percent should be invested in equity and 50 percent in debt. And out of the amount allocated for equity, 30 percent should be invested in American stocks which constitutes 15 percent of the total investment because technology exposure in the American market is better than in India. MK Wealth Management has described investment in debt as a big opportunity considering the current interest rates and their reduction in the next few quarters. But in 3 years equity will give better returns than debt.
RBI will make loans cheaper in the new year
According to MK Wealth Management, the central banks of American and other western countries have started the process of cutting interest rates. After Donald Trump becomes President, it is expected that there will be a period of low interest rates for a long time. Due to reduction in interest rates, money will flow from American and advanced economies to emerging countries. RBI can reduce interest rates from the first quarter of 2025 and interest rates can be reduced by 25-50 basis points which will benefit the housing sector.
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