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MONTHLY UPDATE MAY 2022

The month of May followed the tradition of volatility of the last few months where initially the markets sold off and were down as much as 7-8% during the month before finally ending down by 3% for the Nifty and around 5% for the Midcap Indices.

Results continued to flow in during the month and stock movements were quite dependant on results and the outlook of the companies. The global markets remained on the edge due to persistently high inflation as well as continued supply side issues on both agricultural and industrial commodities. Crude prices continued to rise with brent crude ending at $ 124 nearly 20% up during the month.

The RBI also finally seems to have recognized the inflation threat and have started acting on that. The question is whether its too late as the monetary policy largely is more effective on manufacturing inflation where a big move has already happened and recent inflation upmoves are more food driven where monetary policy is ineffective largely. However overall inflation is way beyond comfort at this stage and needs to be addressed. The supply side remains an issue so the central banks have no option but to curtail demand and bring growth down to address inflation in the short run. The key is what this does to asset markets which have not priced in such aggressive monetary tightening. Headwinds remain strong and this year will be a tough one and stock picking will be extremely important.

The big change in trend which I see happening is going to be on the way sectors are going to perform this year. The big movers of the last year Technology and Commodities seems to be reaching a peak of performance and could underperform. Automobiles and Capital Goods look interestingly poised.

As we ended the month we saw the bond yields continue to rise and the 10 year bond yield ended at 7.44% near a multiyear high. Given hawkish commentary of central banks we could see more selloffs here.

The value Vs growth argument is going to be substantial this year. I do not believe that very high valuations of growth stocks can sustain, on the other hand as growth of value and growth stocks converge we will see better value play in that segment. The key to invest this year will be to identify value stocks with growth triggers.

The good part for equity investors in India is that domestic flows into equities continue to be strong and as such good companies at the right valuations picked up early can make decent money even when overall market valuations are stretched. As I write today in my view the worst case downside in the markets seems to be around 8-10%. Either we need to spend a long time sideways or finish off the corrective move with a sharp decline over the next few weeks. Which way will we go is the thing that needs to be observed. The strategy is to be cautious while looking for opportunities as many companies still continue to do very well.

In a recovering economy opportunities will always present themselves and we should be ready to capture them as they arise.

ASKSANDIPSABHARWAL.COM PRODUCT PERFORMANCES

The month of May was a good month overall for us. The Long Term Plans continued to maintain their strong long term track record. Trading plans did exceptionally well with huge profits in a tough month thus generating huge alpha. The only laggard at this stage continues to be our short term investing product where market volatility is hurting generating sustainable profits. Our outperformance across products helped us build on the gains made during this year and increase the gap with competing products further.

POWER ALPHA STOCKS

We will first deal with Power Alpha Stocks where we could not book any profits during the month given the way markets behaved. This has been the most challenging product for this year and its important to address this upfront. Our best alpha generating product over several years is having a tough 2022. Our aim is to provide good ROI to investors with us and I assure all subscribers to this product that we will adjust subscriptions of clients so that they recover their fees and make money. The high ROI of this product has continued over the last many years and I believe that the current phase is an aberration. Overall profits were over Rs 400000 for the last two calendar years a very high ROI. on a Rs 6-8 Lakhs peak capital and Rs 6 lakhs average capital deployed. Overall opportunities will be good for this product even in the future and we will see to capture them. This is an ideal product for those who want to keep the capital as it is and book regular profits so as to make reasonably higher returns over fixed deposits/Hybrid Products etc.

TARGET MIDCAP PORTFOLIO

The TARGET MIDCAP PORTFOLIO had a corrective month after a series of spectacular months. The portfolio was down 7.7% thus underperforming the Midcap Index with was down 5.3%. However this was something that had to be expected as we were outperforming so much over the last many months and quarters. The portfolio now up 13% from 31st of December as against negative returns of 7% for the Midcap Index as well as most Midcap Mutual Funds as well as PMS Products which are down 5-20%. The portfolio is up a huge 38% over a 12 month period as against just 9.7% for the MIDCAP Index and 8% for an average midcap mutual fund. The performance of this plan has been much beyond my expectations. The portfolio is now up 159% since inception and we hope to continue to do well going forward. Our value with growth strategy is working well.

TARGET BLUECHIP PORTFOLIO

The Target Bluechip Portfolio had a very good month with the portfolio was down just 0.94% while the Nifty declined 3% We have a good cash holding in the product driven by a cautious near term outlook. I believe the time to deploy will come earlier than later now over the next few weeks.

The portfolio was up around 2.2% for this year as against a decline of 4.44% for the Nifty thus meeting our full year 5% outperformance target. The aim is to outperform by 5% every year to deliver strong long term returns and I believe we are on track for that. This is an excellent product for those who are looking for steady returns with low volatility. One year returns of the portfolio are 21% much above Nifty returns of 6% for the last 12 months.


PLATINUM PLAN

The Platinum Plan is our oldest Long Term Portfolio plan performed strongly in the first quarter AND saw some of the small caps sell off this month and the portfolio was down 6.04% during the month. against a 3% decline for the Nifty. With the performance over the year and for the last one year the PLATINUM PLAN has beaten all Flexicap and Multicap schemes which are all with negative returns. We have maintained some cash to capture opportunities going forward. The since inception returns are now 445% with a CAGR of returns of over 28%. The portfolio has a good mix of largecaps and smaller midcaps which have good potential over the long run. The portfolio performance should pick up going forward. This is an ideal medium risk portfolio.


ONLY FOR TRADERS

Only for traders had an spectacular month with profits on a two lot trading basis running at Rs 216000. Most of the trades did very well and we were actually running at higher profits before a stop loss just at the end of the month. The performance of the product is running very well over the last many months. We will get 3-5 very good months in a year 3-5 average months and 3-5 not very good months. The ROI of this product is running very high at this point of time. In my view the payoffs will continue to be very high sometime in the next months when the view plays out right and we can realize full profits.

POSITIONAL TRADING CALLS

Positional Trading Calls restarted its exceptional performance after with 2 Lot profits of Rs 152000. Most calls worked out during the month. We are now exiting non working calls in small losses and enjoying full profits for the calls that work out. The good thing in trading is that a period of 2-3 months of good performance can make up for a few subdued months which this product has displayed over time. This has been one of our best products in the past. We hope to continue to do well going forward and this is an ideal trading product for those looking for lesser calls with bigger targets in a month.

WINNERS PLAN

Small and smaller sized midcaps started slow last year and built on gains. The same is likely this year. The first few months overall have seen decline in small caps but some of our stocks have done well and came back strongly over the last two weeks. There will be opportunities going forward. We booked one recommendation with strong profits during the month. Many of our recommendations have become multibaggers and we have booked profits in some of them last year. We recommended two new stocks over the last two months. The current year is one where timing entries will be important and that is what we will try to guide new investors to do. Small caps have a tendency to underperform for long periods of time and then give sudden gains. This is unlikely to change.


UNLOCK GAINS PORTFOLIO

Unlock gains got fully deployed last month and volatility hit the performance at the start of the product. It is too early to talk of performance as its just been a few weeks since we went fully invested. I will write in more detail at the end of the quarter in June. However all stocks are well placed to outperform over the next two years. Will write more on this product later.

For more details write to us at info@asksandipsabharwal.com . You can also call us up at 7303163931/022-66666931 or visit www.asksandipsabharwal.com

INVESTMENT ADVISORY SERVICES
HNI SERVICES


Minimum capital requirement Rs 2 Crores. Fees are based on percentage of Total Assets under advisory with a minimum fee requirement of Rs 540000 plus GST.

HNI Services under the Investment Advisory segment are specifically designed for clients who desire to have a 360 degree coverage of their entire investment basket. Clients will be advised allocations to different asset classes with specific allocations to individual equity strategies in this customized offering vary according to client needs.

Different clients have different needs For clients only focussed on the Long Term the investment portfolio is different and for those who want a combination of strategies it is different. We have clients with different requirements and all are dealt with separately. Some key aspects are as follows.

The Wealth Management customized offering is something that I do for HNI Clients. These services are customized to the needs to the client and some of the key features include asset allocation and subsequently different strategies in the equity markets as per the equity market allocation

  1. The portfolio and services will be customized to the particular client. The strategies could be

    a. Only Long Term
    b. Only Short Term
    c. A combination of Long Term, Short Term and Trading

  2. The service will be interactive where the client can interact with me directly to clarify doubts if any. This can be in the form of Phone calls/messages etc. HNI clients interact bypass the office to be in touch with me. This is not available in the other packages.

  3. HNI clients can ask for clarifications on any stocks and assets across the investment horizon. This helps in eliminating investment mistakes.

  4. The portfolio is individually monitored and the client only has the responsibility of mailing the portfolio to us every 15 days or trading positions more frequently so that we can go through it and advise on the portfolio on a proactive basis.

    a. Besides this the HNI clients will continue to get all the Long Term Calls as well as the standardized MODEL PORTFOLIOs under our Research Analyst services.

    b. These MODEL PORTFOLIO’s have allocations to individual stocks along with regular updates

    c. LONG TERM Investment calls from the small cap universe

  5. Specific long term allocations with percentage allocations will be specifically provided to HNI Clients

  6. Swing Trading Ideas. Short Term Cash calls with holding horizon of 30-90 days and return target of 5-15% will also be provided to you. A part of the portfolio can be allocated to these calls depending on my analysis of how your money needs to be exactly managed. This has done exceptionally well for us over the last few months and years.

  7. Trading Calls from the Futures and Options universe whenever conviction is high will be given to you. Here the typical holding horizon is from a few days to couple of weeks In case you are uncomfortable with trading in futures we can remove this service for you. A small fund allocation to trading has worked very well for our HNI clients. However many clients, especially those overseas might find it tough to operate these calls. Moreover these are very time specific. Ideally for your kind of profile you might not want to take these particular calls

  8. All your other financial investments i.e. Mutual Funds, FD’S, PMS Products etc will be reviewed by me and recommendations on the same will be given to you. These will then be monitored for changes as required so that the allocation runs effectively and optimally.


In a nutshell the HNI portfolio and services are where each clients portfolio is tracked by me directly and individually depending on the need of the clients. For conservative clients we might have a different portfolio allocation strategy and for aggressive clients we will strategize it differently. The client can clarify any newsflow they hear from the markets so as to avoid investment mistakes

 

Those interested in HNI Services or COMBO PLANS can write to us at info@asksandipsabharwal.com or

Call us on +91-22-66666931, 7303163931

INVESTMENT ADVISORY PLANS

LONG TERM PLANS

TARGET BLUECHIP PORTFOLIO - A focussed BLUECHIP STOCKS portfolio that will invest in 9 identified large cap blue chip stocks.

Rs 27000 plus GST


TARGET MIDCAP PORTFOLIO- A focussed MIDCAP STOCKS portfolio which will invest in 9 identified High Quality Midcap Stocks.

Rs 29000 plus GST

PLATINUM PLAN- Model Portfolio based advise along with potential high growth stock recommendations A Multicap portfolio with a mix of Large and Mid Caps.

Rs 31000 + GST


For more details click the MEMBERSHIP TAB



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ONLY FOR TRADERS -Stock Advisory Package which has been designed only for traders in the stock markets. An active plan . 2 Calls per week with average holding period of 1-10 days

Quarterly Rs 24000+ GST, Semi-Annual Rs 37000+ GST, Annual Rs 53000+ GST

POSITIONAL TRADING CALLS This is a POSITIONAL TRADING product with calls given in the Futures & Options segment. A low involvement product for all stock market participants. 2-3 Calls per month with average holding period of 1-4 weeks

Semi-Annual Rs 36000 + GST, ANNUAL- Rs 54000 + GST

WINNERS PLAN- Annual advisory package which will include 5-10 strong long term return where the return targets will be higher than market returns over Long Term Holding.

Rs 26000 plus GST

SHORT TERM PLAN

POWER ALPHA - Stock Advisory package that is specifically designed to cater to investors who want to take short term exposures into the stock markets but do not want to trade in the Futures & Options market.

Semi Annual Rs 29500+ GST, Annual Rs 44000+ GST

For more details click the MEMBERSHIP TAB on the top of the page
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Investment Advisor Registration No INA000000425  Research Analyst Registration No INH000008109