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    Aggressive, moderate and conservative: IIFL comes up with portfolios for different risk investors

    Aggressive, moderate and conservative: IIFL comes up with portfolios for different risk investors

    Aggressive, moderate and conservative: IIFL comes up with portfolios for different risk investors
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    By Pranati Deva   IST (Updated)

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    The brokerage believes that 2021 might be a year of broader markets, cyclical and PSU themes which have been lagging behind the current upside.

    Indian equities have been hitting all-time highs driven by continued buying by foreign institutional investors. The rally is on the back of positive developments around the approval of the coronavirus vaccine, which ignited hopes of a faster global economic recovery.
    "As the coronavirus-hit world economy enters into the year 2021, global stock markets continue to balloon backed by combination of vaccine rollouts, fiscal stimulus and easy monetary policies by the large economies," IIFL Securities observed in a recent note.
    Global markets despite expensive valuations, may also expand further as expectations of more stimulus and extension of ongoing ultra-accommodative monetary support by the developed markets will continue to create a positive backdrop for equities, it added.
    The brokerage has come up with various portfolios for different risk investors - Aggressive, Moderate and Conservative. Aggressive portfolio targets above-market return using high beta and midcap ideas. Moderate portfolio uses multi-cap approach to reduce volatility. Conservative portfolio is built with objectives of less volatility and capital protection.
    The portfolios have a CAGR of up to 24 percent for a time period of 2 years, as per the brokerage. The aggressive and moderate portfolios have also outperformed the benchmark Nifty since inception.
    IIFL further noted that the current valuations for India’s frontline companies are at multi-year highs as aggressive FIIs kept pumping money in domestic equities on expectations of RBI's continued dovish stance, high global liquidity, rising rural demand and market shift towards organised players which would drive earnings growth to a multi-year upcycle.
    The brokerage believes that 2021 might be a year of broader markets, cyclical and PSU themes which have been lagging behind the current upside. Investors with low risk appetite for direct equities are advised to continue to invest through mutual fund route via SIP, it advises.
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