My New Investments in this falling market
Its Shopping Time
In one of the previous newsletters (Stock from Village), I explained how I analyzed Credit Grameen and avoided the stock. It turned out to be a good decision, as when I covered it, it was trading over 1200+ per share. Today, it is trading below 950 per share. Given the challenges the MFI sector is facing, I will stay away from the stock.
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Coming to topic for this week - my new investments. When the market was at an all time high (Nifty at 26,000), I did exit one of my Mutual Funds. To be honest, I had to idea market will fall below 24,000 in no time. And when it did, I had good cash (more on how I manage my cash reserve next week - another reason to subscribe!).
Liquidity gave me an opportunity to take fresh entry into stocks and top-up my existing investments.
Pick 1: Nippon India ETF Hang Seng BEES
FII has sold heavily in the last 5 weeks and as per reports, most of the money is going to China. As an investor, I do see a good opportunity in China given the valuations. To make it more clear, today the price of this ETF is around 350 per unit. In 2019, it was trading at the same levels. ZERO returns in 5 years. It was a no-brainer for me and given I am investing in ETF, the risk is minimal given the diversification.
Pick 2: IDFC First Bank
First, I did not invest in the bank because I believe it will be the next HDFC. If I did, I would have invested in it long back - the story peaked in 2022 and since then the stock has not moved. In fact, it has fallen since then. It presented an investment opportunity.
Yes, the bank has not reported good numbers and hence the stock is beaten but it was clear that FY25 won’t be good for the bank. We don’t invest to make gains in a few quarters right?
Let me know in the comments if you have any of these in your portfolio.
My Top Ups
Given the chances that Trump would be elected as US President were higher, it was the right move to top-up my NASDAQ investment. I did make good investments in the NASDAQ - (I have been doing SIP since 2021-22) in MON100 ETF.
My other investment in the falling market was another index (via ETF). Nifty Next 50, is down nearly 7% from its peak so made sense to make more investment in it.
Lastly, I did buy Zomato in small quantities at around 240-245 per share.
I usually do staggered investing but for the two new entries in my portfolio, I did most of my total planned investment in two lots. The market is expected to fall further, so I am keeping around 25% if that opportunity is presented.
P.S - None of these are investment advice. These stocks are fit as they are right from my profile. They may not be the best fit for you, so please consult an advisor.
If you have any questions on why I investment in these stocks, feel free to drop your question in the comments. To keep me motivated to write every week, please share the newsletter with your friends.
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