Indian Equity investment blueprint for May 2019: Elections, uncertainty and more !

What should be your ideal equity investment strategy if you plan to enter the markets in May 2019 ! Tip: Keep your cards close to your chest....

Disclaimer: The following blueprint is not sponsored or marketed by any entity/sole and is purely my opinion based on market analysis over a tumultuous 2018 and factoring in the volatility of Q4:

(There is no intention to promote or market any scrip/company, etc.)

• Foreign portfolio investors (FPIs) have already factored in a victory for NDA (albeit with a lower margin compared to 2014) but surely crossing 272 seats in 2019. The fund inflows have come in. Luckily, our DIIs are also pumping in money, but it is sectoral and in silos. Retail investors have a question now, as do some of the other major investors: When to enter the Indian equity market? Now, or post 23rd May 2019.
• The answer lies in a thorough understanding on elections and its impact on Indian equities. Definitely, hold your cards close to your chest, keep a track of price movements, corporate earnings, quarterly earnings growth, P/E Ratio, etc. Do your homework well in advance and keep your cards ready to play.
• DO NOT come in the way of a speeding truck: And that too by choice? It is always better to wait till the outcome and then step the accelerator. I completely agree with the theme of Motilal Oswal: "Buy Right, Sit Tight" https://www.motilaloswal.com/
• Even though all calculation, wisdom and prediction suggests that the progressive Modi government will comfortably get a second term, still, long term investors need to play smart: Invest once and stay put for the long term.
• This is NOT a trader's market: Or it sure does not look like. With the volatility index up and elections on the cards, trading is not a feasible option, unless you are a market expert with appropriate experience. The trading v/s investment debate will keep going on, however, this article is purely from an investment view and NOT a trading view.
• Some stocks that are extremely attractive at current market price (long term view) and based on the genesis of 'value investing':

a) Ashok Leyland: Gaining momentum and building solid foundation around 90 levels.

b) Maruti Suzuki India: Market leader and stable outlook for future considering the emergence of electric vehicles and the leverage that it holds, irrespective of a lacklustre quarterly performance.

c) Asian Paints: The growth story is NOT over yet: There is still enough scope for making money, BUT in the longer term.

d) Titan: Market leadership, sector expansion, quality management and future prospects.

e) Marico: Again, the story is NOT over yet. These are great companies that can turn out to be multi-baggers.

BONUS Recommendation: From the Small cap winners !

Balaji Telefilms: A potential dark-horse and extremely under-valued company. ALT Balaji subscriptions are growing at a consistent pace, the company is currently in growth/investment mode. In its 25th year now, and one of only two listed OTT platforms in the country with a strong viewer base, top TRP in television and regional content ! Currently available at an extremely attractive price-point. Slim but realistic chance of Bonus shares since 2019 is a silver jubilee year for the company. (This is speculative :)

Conclusion: All conventional wisdom and experience points towards a multi-year Bull market beginning in 2019 and beyond. Try to enter the bus on time, and stay invested for 10-15 years to get value for your hard-earned money.

All of the above can potentially deliver a CAGR of above 15% for the next 30 years ! The indices itself have delivered at least 16% CAGR for the past 35 years !

The power of compounding: An investment of (2 Lakh) 2,00,000 with a CAGR of 16.59% over the next 30 years literally turns out to (2 Crore) 2,00,000,00 ! And we have not even counted the dividends that will be accumulated during this period for FREE !

All the best, investors ! Good luck traders :)