Reflecting on Samvat 2081 - A Year of Shifts and Surprises

The glow of Diwali is a perfect backdrop for taking stock of our investment journey over the last year. And what a ride it was! Samvat 2081 felt like a rollercoaster, full of twists and turns that tested our resolve. But for all its short-term hiccups, this period brilliantly illuminated a fundamental truth, the road to long-term wealth is paved with equities, and the occasional pothole is just part of the journey.[EasyDNNnews:PaidContentStart]

From last Diwali to today, the market narrative was defined by global turbulence clashing with India’s remarkable resilience. You likely noticed that our headline indices, the Nifty and Sensex, did not shoot for the moon, unlike the previous Diwali when we saw equity indices gaining northward of 50 per cent in the previous one year. This time, they moved sideways, grinding out gains in a tough environment. But this is where seasoned investors nod knowingly. This sideways action is not a failure, it is a classic lesson that equities remain the most powerful engine for building wealth over time, and not in one or two years.

The world has changed dramatically. The age of hyper-globalisation is behind us, giving way to a new phase where countries are turning inward. Geopolitical shifts and renewed trade tensions have added to the turbulence. Amid all this global uncertainty, India’s steady domestic growth has been the real story. Our economy, fortified by strong fundamentals, demonstrated a robust immune system. Testament to this is the recent upgrade of Indian GDP by 20 basis points to 6.6 per cent by the IMF for 2025. The lesson from all these to every retail investor is clear: do not let every alarming global headline shake your resolve. Staying focused on India’s long-term story beats reacting to short-term noise every single time.

It is heartening to see how many of you have grown into mature investors. Take, for instance, the recent news about a possible 100 per cent tariff on China. It sparked a massive one-day sell-off in the US markets, showing how quickly fear can spread. But in India, things were different this time. While global shocks did create volatility, domestic investor confidence stayed strong. The best proof of this lies in the steady inflows through Systematic Investment Plans (SIPs). Even when markets wobbled, millions of Indian households kept investing regularly. This discipline helped prevent the kind of panic selling we used to see in the past. You, the steadfast retail investor, have become a stabilising force in the market. You were the real hero of this year’s story. The era when foreign investors alone dictated our markets is truly over.

So, what wisdom can we carry into the new Samvat? Markets will always swing between euphoria and panic, but wealth is built by those who sit through these cycles. Resist the urge to gamble on tips or constantly tinker with a well-constructed portfolio. If you own quality companies, give them time to grow. Your job is not to predict the next 10 per cent move, but to participate in the multi-bagger journeys by being a patient owner.

Second, remember that balance is your best friend. This year showed that a diversified portfolio is practical wisdom, not just theory. Having an allocation to different subcategories of equities provided a valuable hedge when things got shaky for the broader market. Use each category for its purpose. Avoid the temptation to chase the hottest theme, and remember how quickly sentiment can flip.

Finally, let us focus on the coming decade, not just the coming week. India’s growth story, driven by a young population, digitalisation, and entrepreneurial energy, is far from over. As we light our diyas this Diwali, let us step into Samvat 2082 with optimism and discipline. The festival reminds us that light triumphs over darkness. In investing, informed optimism and steady discipline will always triumph over fear.

Here is to the coming year, to compounding our wealth steadily, and to lighting up our financial lives without burning our fingers.

Happy Investing! Do share your feedback with us at [email protected]

RAJESH V PADODE
Managing Director & Editor

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