Hey
welcome back!
Today is
8th January 2021 and you will get the video tomorrow that is on 11th January 2021
@ 8 O'clock in the morning. we are ready with this month's Smart Mutual Fund
SIP.
1st of all, Let's check the valuation of the stock market.
|
P/E
Price to Earnings Valuation of Sensex on 8th January 2021 |
BSE -
Sensex - 48782
PE (Price
to Earning) – 33.93
Price to Book
Value – 3.31
Dividend
Yield - 0.82
Right now
stock market valuation is at 33.93PE (Price to Earning) means for earning one
rupee we have to give 33.93 rupees right now, which is expensive deal as it is
delivering just 2.94% return, and right now bank saving accounts are offering
3.5% to 4% interest rate and hence the expected return is much less than the
bank saving account. Bank saving account offers risk free return of 3.5% to 4%
return then why the hell we will take risk of investing the money in stock
market for 2.94% returns expectations.
So, we will not infuse new money
in stock market right now and instead we will wait for either earnings of the
companies to pick up to justify the valuation or vice versa. We don’t have any
problem buying the markets at higher level, but we will only buy it after we
get valuation justification. Till then we will park the money in debt fund
especially, in GILT Fund.
The Fund
that we are investing is, Nippon India Gilt Securities Fund.
SIP
AMOUNT - 5000
NAV - 32.9427
No. of Units allotted - 151.749
and this
is the current status of stock market portfolio
Total
money invested - 9,50,393
Market
Value of Investment - 13,58,905
Change – 408512 (42.98%)
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