Rebalancing Updates: December 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.

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

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

Current Market Trends

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.

Sectoral Trends

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.

Portfolio Updates

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: