Bank Fixed Deposit Outperform
Shares, Gold, Property in 2015
Bank FD outperform Shares, Gold, Property in 2015..!
For the 3rd time in the last 15 years, bank fixed
deposits (FDs) were the best performing asset, outperforming equities, gold
& property.
After returning 32% in 2014, equities were down
6.4% in 2015.
At the beginning of last year, very few would
have given FDs even an outside chance of being the best performing asset for
the year.
Moreover, of the three calendar years with
negative equity returns in the last decade, 2015 has been the only one where in
a falling market, mid cap stocks have outperformed the large caps.
Last year sector selection did not matter much as
compared to the last few years, inter-sectoral performance deviation was much
lower.
For an investor, however, the basic thinking
should be individual shares. So, the importance of disciplined asset allocation
for retail investors to maintain a balance between equities and fixed return
instruments was reinforced.
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