Start Your Sensex 100,000 Journey Today - The 5 Minute WrapUp by Equitymaster
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Start Your Sensex 100,000 Journey Today

Jan 31, 2019

Editor's Note: Today's the big day, dear reader. At 5 P.M this evening, I will reveal details of the Rebirth of India, Sensex 100,000, and the 7 stocks you could consider buying right now! You should not miss the Rebirth of India MEGA summit for anything. If you haven't signed up for the summit, you can do so now by downloading my FREE report - Rebirth of India.


Tanushree Banerjee, Editor, The 5 Minute Wrapup

Most Indian households have one thing in common: A relative who is an LIC agent.

The one who we may have tried to avoid at some point.

Around this time of the year, you'll find them trying to contact you for your tax saving investments.

But have you noticed these visits have become less common over the years?

I have.

In fact, my relative who was an LIC agent has started her mutual fund distribution business.

I asked her why. After all she gets higher commissions on the life insurance products.

Her reply was 'ELSS' (Equity Linked Saving Scheme).

She told me how hard it has become to convince people to buy life insurance as an investment.

Awareness among the masses has increased.

With India's young population demographic, there has certainly been a shift in mindset. The Mutual Fund industry's Assets Under Management (AUM) stood at Rs 22 trillion as on Dec 2018. This is more than a five-fold increase compared to the AUM of Rs 4 trillion in Dec 2008 (Source: AMFI).

Despite this, there are just 25 million SIP accounts currently in India. This is only 2% of the population.

The AUM to GDP ratio for India also is a lowly 11.8%. This is more than 100% in countries like US and Australia.

The vast majority of the rural population haven't invested in mutual funds yet.

I wrote to you yesterday about the smartphone revolution taking place in India.

Opening and operating a SIP account can be done at the click of a button.

With increased use of technology, the spread of mutual funds as an investment will be much faster than the last decade.

The money flowing into equity markets will increase multi-fold.

The Association of Mutual funds in India (AMFI) is targeting an AUM of 95 trillion by 2025!

That is an almost five-fold increase from current levels.

A five-fold increase in AUM over the last decade saw the Sensex move from 10,000 to 35,000.

Will we see a similar move from 35,000 to 100,000 with increasing participation from Indian investors?

I surely believe so.

And this is just one part of the historic transformation I call - Rebirth of India.

It's indeed a great opportunity for you, dear reader, to participate in the Sensex's journey to 100,000.

At 5 P.M today, I along with Rahul Goel, CEO of Equitymaster will present to you the details of the historic opportunity I call the Rebirth of India...and how you can profit from it.

Join us for the first ever, Rebirth of India MEGA summit.

I look forward to sharing all my research with you including the seven stocks you can consider buying right now!

If you haven't signed up for the summit, you can do so now by downloading my FREE report - Rebirth of India

Chart of the Day

Indian equities have had a tough time in the past one year. With elections around the corner, volatility in the markets has been on a constant rise.

Till date in FY18-19, foreign investors have pulled out around Rs 515 billion from the Indian equity market.

In the past, such panic would have meant the domestic investor would have followed suit.

That hasn't happened this time.

Domestic investors have shown surprising resiliency to the market's volatility.

The month-wise SIP in FY18-19 has seen a constant rise.

Rising Retail Particpation Even In A Falling Market

Also, close to 1 million new SIP accounts have been added during FY18-19 according to AMFI.

The days of knee-jerk panic withdrawals by individual investors are slowly but surely reducing. If they ride out this volatility they will see the benefit of the cycle turning in their favor.

That will mark a significant change in the mindset of the retail investor for the long term.

Warm regards,

Tanushree Banerjee
Tanushree Banerjee (Research Analyst)
Editor, The 5 Minute WrapUp

PS: Join me and Rahul for the Rebirth of India MEGA summit TODAY at 5 P.M. Get full details about this historic opportunity, and how you can create life-changing wealth. Get started with 7 stocks that you can consider buying right now! If you haven't signed up for the summit, you can do so now by downloading my FREE report - Rebirth of India.

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1 Responses to "Start Your Sensex 100,000 Journey Today"

sanjay

Feb 4, 2019

Money pouring into MFs with hope of making 10+% returns, has inflated the market. just because MFs have cash they keep on buying and inflating the price of good and not so good companies, to levels where they are unreasonable. Is it similar to US markets? Money keeps pouring in and inflating, this will continue as per your script above... to what end? are we talking about hard-work, performance, competition ? some , very few companies recognise these, rest are struggling to make sense of the product baskets they have, demands and how to stay alive somehow. even the best like colgate,bajaj are to my mind, lost in past. i would really love a decent (factual, i know EQM has a wealth of data) response on this.

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