TLDR - Jan to March 2023 Index fund & ETF portfolio review

Jan to March 2023

I felt that the year started generally positive to neutral for the first month. Ukraine war, COVID and Adani controversy seem to have moved to the rear view mirror for the most the part.

SVB, Signature bank and Credit Suisse all brought it back to the forefront. Banking contagion seems to have been contained by the quick movement by Fed and SNB to prevent it spreading across other banks. The solution for the liquidity crisis was the make the big banks even bigger and making them even more “too big to fail”.

The moral hazard is getting more real and banks will continue to leverage this to keep their profits private and the losses public. What lies ahead post this current equilibrium is anyone’s guess.

Key index returns

NSE seems to like moving things around again. They have moved all historical data into a separate website now. So please do refer to the details in the link below.

How was the market return on key indexes for the last 3 months ending 31-Mar-23?

• Nifty =  - 4.03 %

• Nifty next 50 = -10.24%

• Nifty mid cap 150 = -4.37 %

• Nifty small cap 250 = -7.18%

Clearly it has been a rough 3 months with Nifty next 50 performing worser than the mid cap and small indices. Strange indeed.

My ETF Investments

  No new investments into ETFs, so these are just organic growth. Comparing the numbers across the year, The market seems to have taken back gains from last year to this year. See the two charts comparing the numbers between April 2023 and April 2022 respectively.

My Kuvera Index funds

SIP is on auto pilot.  Most of the gains is driven by ongoing contributions into the funds every month. XIRR has taken a massive beating between Apr 2022 and Apr 2023. Down from 27 to less than 11%. Massive reduction in overall returns.

I might trim my SIP on momentum index as the current market doesn’t seem to work well with Momentum strategy. But will not be selling anything yet.

Overall XIRR for the entire period is at 10.73% which is something I am still ok with. Over the long term if I can keep this level over 10+ years I will be a happy camper.

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