As we come to the close of 2022, we are delving deeper into the trends that shaped the year gone by. Especially a year like the one we all have witnessed. It has truly been 365 days of multiple trysts with reality, innumerable learnings and timeless principles coming to the fore leading to a great playbook for the years ahead.

We present in this year-end note :

1. Analysis of Mutual Funds and our learnings from them.

2. Insightful charts that tell the story of 2022.

3. How at Goal Teller our recommendations fared.

4. Overall learning.

5. Crystal Gazing into 2023.

Hope you all find it an interesting and insightful read and do learn from it.

Best Performing Funds in 2022

Best Funds Across Categories

Bank Of India Credit Risk Fund -   143%

This one is a great case study. It's a debt fund that was down > 50% just a few years back on back of IL&FS defaults and is back now (most likely due to recoveries)

Worst Fund Across Categories

Edelweiss US Tech Fund of Funds - 38.8% 

Much loved FAANG stocks and the Nasdaq being down › 30% leading to most international funds being deep in red

Best Equity Fund

Nippon India ETF Nifty PSU Bank BeES: 56.3%

A Massive PSU bank rally toward the end of the year triggered this performance

Best Category

Gold (+ 13% across 21 funds)

As central banks rushed to buy gold and the fad of crypto as an alternative to Gold died down, Gold did well.

Worst Category

International Funds - Average of –15.8 across 45 funds

This category has been badly hit and barring

HSBC Brazil Funds have most of them, deep in red.

Average Returns

Equity Funds: 1.2% across 429 funds

Liquid Funds: 4.6% across 106 funds

Arbitrage Funds: 4.5% across 23 funds

Disclaimer:

All the above data is point-to-point returns from Dec 31st 2021 as on 23rd Dec 2022.

Source: AMFI

Learnings

1. Domestic Equities should always be the lion's share of your portfolio.

2. International Equities can be exposed up to 10% as a general rule. (We at GoalTeller believe Nasdaq presents a good SIP investment opportunity)

3. Gold should be part of one's portfolio if not for anything as a hedge against global geopolitical concern.

4. If you are in a low tax bracket FDs are the best bet High tax brackets, Arbitrage Funds (>3m), and liquid funds are good for temporary parking requirements

5. Stick to diversified equity funds

The year in charts

Indian Rope Trick

1. PSU bank stocks soared on the bank of cleaner Balance Sheets registering more than 60% rise.

2. Despite all the global carnage, the Nifty managed to stay positive during the year.

3. Warren Buffet makes yet another comeback.

4. Last year’s darlings being Bitcoin, Robinhood etc saw a massive crash.

FAANG Stocks (Complete Carnage)

1. Meta and Tesla were down by more than 65% through the year.

2. Apple was the lowest loser with only 28% dip in price

Global Politics Impacting Currencies

1. Check out the Russian Rubel (An absolute Russian Roulette here)

2. INR despite being down, holds its own against the USD as rates in the US shoot up with a flight of capital back into the country and currency

Why MF Investing needs proper guidance?

1. Overseas Funds lost a whopping 30% on average

2. Despite the Nifty being flat, some funds had negative returns by upto 20%.

3. Recoveries was seen in some debt funds as BOI Axa which was down more than 50% in 2018 has recovered most losses

Inflation

1. Inflation dominated headlines globally.

2. Record breaking inflation numbers could be seen globally.

3. Oil Price surged and post pandemic demand exerted pressure both on demand and supply side

Learnings from 2022

1. Times do change but investment principles remain the same (Do not get sucked into euphoric trends)

2. Long Term means more than 5 years and not 1 year

3. Diversify your portfolio

4. Do not sell in panic

How 2022 fared for Goal Teller and what's in store in 2023?

Advisory

1. We had a great year in terms of getting the market direction right - On multiple occasions, during May and June 2022 we suggested investors invest in equities. We also spoke about the reasons for our bullish view on equities and most of them played out Gold was a preferred asset class for us since the middle of 2022.

2. Earlier in February, we advised investors to exit all long-term debt funds and move into shorter-duration funds that played out perfectly.

3. For the last 3m, we have been suggesting investing in Nasdaq which has not entirely played out yet, but we continue to remain convinced about this view over a 1 or 3 - year period.

Business

1. We crossed > 1k cr. In assets under advice.

2. Our clients can now buy sell mutual funds through the platform.

3. The GT family grew bigger to › 20 member.

4. We raised a second seed round earlier this year.

5. We were joined by Pankaj Fitkariwala as our Co-Founder.

Looking forward to 2023

1. We continue to believe in equities.

2. Nasdaq can be looked at for aggressive investors with a 3m SIP/STP.

3. Selective bonds continue to provide opportunities to earn better than deposits.

4. PSU Banks could continue to do well, however, they are very volatile, so they are only for aggressive investors and for long periods of time horizon

DISCLAIMER

All investment schemes are subject to variety of risks (market, interest, credit etc.), read all scheme related documents carefully. The details and information provided shouldn't be construed as an advice provided by GoalTeller in any way or form. The subject content is prepared by GoalTeller for general purpose information only and should not be construed as an offer or solicitation of any schemes or investment products.  The data compiled is from different sources and readers are urged to check the authenticity of this data for any action or inference made. GoalTeller and/or any of its officials or directors or owners are not responsible in any form for any risks that arise out of this blog.