My India ETF Portfolio - Q3 2019 review
TLDR - July to September (Q3) 2019 India ETF portfolio review
After a few week hiatus because of summer school break here in Singapore. I am back to my blog, hope you are all waiting eagerly for this update. My year in review for 2018 is available here and Q2 2019 review here.
Jul to Sep 2019
The third quarter of 2019, the markets continue to be volatile primarily driven by
Post election run up deflation
Continuing trade war between US and China
Auto sector downturn continuation
Bombing of the Saudi oil fields
A massive spike due to the corporate tax slashing by the FM in Sep.
All these add up to the somewhat muted performance of the markets for the first 2 months of the quarter and the massive spike in September because of the tax slash.
Key index returns
How was the market return on key indexes for Q3 in 2019
Sensex = (7.3) %
Nifty = (8.4)%
Nifty next 50 = (5.3) %
Nifty mid cap 100 = (13) %
Nifty Small cap 100 = (16.1) %
As you can see despite the massive bump in the market in September, all the broad sectoral indices have performed rather poorly.
My ETF Investments
If you have not read my blog post on how i purchase my funds - i recommend you do that. My purchases follow the market direction. There will be a few months where there are a lot more cash outflow than in other months based on how the prices are triggered.
I have been actively reducing the amount of outflow to equity this quarter as i felt that equity is overbought and the main street vs. Dalal street has a lot of variance. So my outflow this quarter has been reduced. I still keep my monthly investment amount the same, but I have shifted more towards debt instead of equity. I have also started supplementing ETFs with index funds via Kuvera.in. So the reduction is in the outlay is probably explained that way as well.
With the introduction of Motilal Oswal Mid cap index fund, which I reviewed here, I am moving more and more of my investments into index funds.
Index transactions for Q3 2019 as of 2-Oct-2019
So my outlay is slightly better than last quarter. My Q3 return is on the positive side, compared to how the rest of the indexes have performed, I am quite happy with that.
Jul to Sep 2019
Monthly outlay for 7,8.9 periods
2018 to now
So how is the ETF portfolio like based on all my trades across the last 21 months?
Portfolio from Jan 2018 to Sep 2019
Not great, I am down by 75K on an investment of 14 Lakhs. When you see a lot of red, it is often tempting to reduce or worse still stop investing. I don’t plan on doing that. I will continue to invest in the ETFs and also via index funds via SIP for the long term.
Conclusion
How has your equity portfolio performed over the last 21 months?
What is your take on these indexes? What is your outlook for the last quarter of 2019 and are you planning a change in strategy for the rest of the year?
Leave your comments below.
Happy Investing - #MyFatFIRE
