Financial Planning for 2016Know where to invest in This Financial Year!

Equities#1

The negatives that have pulled down the performance in late 2015 have not yet disappeared. Commodity prices continue tobe soft, global growth is expected to be very slow pulled down mainly by China, Japan again slipped into recession. Emerging

economies face the risk of sharp cutback in growth and depreciation in currencies apart from rising trade and fiscal deficits,developed economies (except US) are still struggling under these weights. US is the bright spot currently as far as growth is

concerned

1-1.S&P BSESENSX.BSE - 29/12/15

Fixed Income

• The calendar 2015 was a roller coaster year for fixed Income with 10 year G Sec yields falling from 7.86% at the beginning ofthe year to 7.69% in Jan/Feb 2015 before once again rising to 7.99% in May. It once again fell to 7.71% in June and rose to7.89% in the same month. In Oct the yields fell to 7.51% before inching up once again to 7.75% now

• Interest rates in India could inch up a little from the current levels (coinciding with the busy season and thefallout due to expectations of further rate hikes by the US Fed). Post February, we could see a sustained fall in yields in India.This could continue till about August

#2

Mutual Funds

Retail interest in equity mutual funds will continue to grow and SIP investments will see even more growth. Balanced (Hybrid) funds will become more popular.

#3

Img Source: www.moneycrashers.com

Gold#4

• Gold prices have now underperformed for more than 4 years. Consistent fall in global gold prices from a high of ~$1900 anounce to $1077 now is one of the main reasons. Global gold prices could be close to a bottom (say 5-7% fromhere)

• The Rupee dollar rate and import duty on gold are the two other determinants of gold price in India. The Rupee could continue to weaken for 1-2 quarters more before reversing trend. Import duty on gold could come in for review and there is a good chance that the same may be reduced from the current 10%

IPO#5

IPO markets will continue to be buoyant with a lot more IPOs expected. IPOs from better run companies are no longer dependent on bullish market conditions. Response to IPOs will also be quite healthy.

Major IPOs Lined Up For 2016 

Rashtriya Ispat NigamAGS Transact Technologies

Nuziveedu SeedsDilip BuildconMatrix Cellular

Paranjape Schemes

Real Estate#6

Except select marquee properties, metro areas will continue to see slow off take and flat/nominally lower prices inresidential segments. Commercial real estate will however see more interest and volumes and prices may rise – though gradually. Investor interest will return slowly to commercial properties while residential properties will see interest from actual users and select PE funds.

Source: realestatewithoutborders.com

For any further queries, visit www.hdfcsec.com

Plan your future with HDFC securities today!