Markets @ record highs; Top 10 wealth creating ideas for next 3-5 years
Kshitij Anand
Moneycontrol News
Indian markets created history as benchmark indices raced to their respective record highs Wednesday after the government's booster shot to ailing public sector banks.
The market did not give an opportunity to retail investors to enter as it opened with a huge gap on the higher side leaving many disappointed. Investors holding short positions also covered their shorts further fueling the rally.
Now that the market is staring at fresh record highs, what should investors do? Well, if you are a long-term investor there is nothing to worry about but if you are a trader then further upside looks tough and caution must be exercised.
Investors should look at stocks which can generate wealth over a period of 3-5 years. These stocks can be bought now or on declines to give maximum risk-to-reward benefits.
Index, on the other hand, is likely to give a moderate return in the next 12 months. Hence, investors should not have high hopes from Nifty or Sensex, suggest experts.
"We expect a moderate return in next 12 months compared to last 2 years rally. The optimism of the market is the recovery of earnings growth in spite of premium valuation which market expects to be maintained,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
“We are constructively positive in India since the premium valuation of the country is likely to be maintained over the long-term as country risk are reducing. We are also positive on specific sectors and stocks gave an improvement in business outlook and enhanced profitability for organised players over the next 1-2 years which is very attractive for equity as an investment class,” he said.
We have collated a list of top 10 wealth-creating ideas with an investment horizon of 3-5 years:
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