Rebalancing Updates: December 2020

Rebalancing Updates: December 2020

Sonam Srivastava | Dec. 6, 2020

Last month was a good month for the Wright portfolios. Our tilt towards smallcap stocks and financial stocks worked in our favour.

Here’s a snapshot of the performance.

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The balanced portfolio shown below is continuing it’s consistent performance in the 16th month of being live!

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We launched a new Momentum portfolio last month, read more about it here: https://www.wrightresearch.in/blog/wright_momentum

The bullish performance for the equities is continuing and we are cautiously optimistic. The optimism is built on the following facts:

  • Earnings have outperformed estimates in previous quarter
  • Cyclical sectors have started picking up
  • RBI has taken a pro-growth stance
  • Vaccine distribution is about to start
  • FII flows have been continuing into India

We are cautious because the stimulus talks in the US are getting delayed and there could be a sell-off they don’t get clear.

Cyclical sectors like Metals, Realty, Auto and Financials have really picked up pace in the last month as seen by the chart below, which is a good sign of recovery.

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Our portfolio allocations are broadly the same but we are tilting a little towards the cyclical sectors by increasing allocation to cyclical stocks like TATAMOTORS, SAIL, CUMMINSIND.

Here’s how the sector, industry & factor exposure looks like:

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