My Index fund and ETF Q2 2022 portfolio review
TLDR - April to June 2022 Index fund & ETF portfolio review
April to June 2022
It has been an interesting period in the market
War in Ukraine has seem to have no end in sight
Crude prices up
Supply chain issues still remain
Inflation still at an all time high across the globe
Fed rate increase is expected to push up borrowing costs across the world
The Recession word is being bandied around
So it has been an interesting second quarter to say the least. Market has been correcting across the world and across asset classes which was very interesting.
Key index returns
A small change in the index returns calculation, NSEINDIA provides TRI (Total Returns Index) values, so from this quarter I am using TRI data instead of index performance.
How was the market return on key indexes for the last 3 months ending 30-Jun-22?
Nifty = -9.11 %
Nifty next 50 = -11.01 %
Nifty mid cap 150 = -9.61 %
Nifty small cap 250 = -14.17%
The market has corrected between 10 and 15% which is healthy given all that is happening in the world. So why all this hoopla about recession etc.? The best advice I would give anyone is to avoid the financial news and focus on the big picture and your goals and how aligned they are. Everything else is noise.
My ETF Investments
No new investments into ETFs, so these are just organic growth
Current value 5-Jul-22
My Kuvera Index funds
My overall XIRR at the end of last quarter was 27%, now it is at 10.7 %. That is significant fall. But given how the markets have been falling I am happy to accumulate more on the cheap. If you are investing for the long term these short term corrections are opportunities to buy.
Some popular questions
1) Should I stop my SIP?
Absolutely not, money is made during corrections and bear markets, SIP by definition is to keep your investments on auto pilot. The market vagaries should not impact your long term investment plans. (This assumes you still have a steady income and you don’t have any catastrophic issues)
2) Should I buy more or wait for the bottom?
If you have the magical ability to predict the bottom of the market, then you don’t need to read any blogs. You are probably sipping champagne on your sea side villa waiting for your personal chef to cook up a scrumptious breakfast or something because you are a billionaire.
But in all seriousness, if you have cash to spare and you are able to the buy more then go for it in smaller chunks. Treat this as a top up SIP for bear markets and buy over a period of 6 to 12 months instead of lump sum amount.
Conclusion
What is your take? How did your portfolio perform in the first quarter of the year? Did you stick to your plan? Did you add more?
Leave your comments below.
Happy Investing - #MyFatFIRE