Vision 2024: Insights for the New Year with Naveen

1. Which major trends guided the markets in 2023?

The geopolitical upheaval was a major trend that guided markets in 2023. While the conflict between Russia & Ukraine continues, a new war broke out between Israel & Palenstine. As a result, markets went through a turbulent phase. Having said that, almost all global markets, especially Indian markets, rebounded smartly. Another trend which is yet again common to 2022 is high inflation. In most geographies, inflation was trending high. This had a direct impact on consumption demand. Retail facing companies have been struggling to stimulate demand, as inflation is eating into discretionary spending. Lastly, few big and important state elections took place in the latter half of the year which gave a substantial impetus to the markets as the current ruling party managed to secure a majority. 

2. Which major trends are you expecting in 2024?

The most awaited event in 2024, in India, is the central elections. The outcome of this event will have a significant impact on markets. Besides this, it will be interesting to watch out how different sectors will perform based on the demand environment. For instance, real estate companies have been doing very well due to the inherent momentum in sales. On the contrary, FMCG companies have underperformed due to lack of volume growth. If 2024 will lead to reversal, only time will tell. 

3. Which new sectors or themes will you be watching out for in 2024?

The major lookout will be for consumption based companies like FMCG, supermarkets, fashion retailers. They have had a tough ride ever since COVID and have not recovered completely. Therefore, quite a lot of investors would have an eye out on such firms. Secondly, BFSI. In spite of the markets rebounding, banking and financial companies have not risen as much as the rest of the markets. Hence, BFSI could see a catchup with its peers when it comes to price performance.  

4. How should investors go about setting financial resolutions or goals?

For anyone looking to set up their financial goals, keeping it simple is of paramount importance. It is straight-forward if you think about it straight. For any material goal, you should note down two things – sum of money required to realize that goal and the time period within which you want to achieve it. Next is to choose the instrument you will choose to park a specific amount every month for you to make it to the goal, could be a smallcase, FD, bank account. Windmill Capital offers goal based smallcases – Horizon smallcases. These smallcases are spread out at different target years and we follow a glide-path approach to investing. You can check them out here!

5. Your Personal goals for 2024

My 2024 goals are centered around my family and improving my financial literacy.

1. I will invest more time in working out and eating right so that I can present my best self to my family.
2. “Before you know it, they’ve grown up so fast and all you have are memories.” – best sums up my feelings about my daughter growing up. This year I will make a lot more memories with her. 
3. I aim to read at least 10 books about finance / investing this year. 

6. Your Professional goals for 2024

As India grows, more and more Indians will start exploring equities as an asset class and Windmill’s smallcases as an investment tool. This presents a challenge as well as an opportunity. The challenge arises because of the need to improve customer awareness about the risks and opportunities associated with equity investing. The opportunity lies in improving our business growth and the investors net worth. We hope to turn the challenge into an opportunity via improved communication and client relationship management. Watch out for more blog updates, AMA’s and improved content in the newsletter.

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Windmill Capital Private Limited is registered with SEBI with INH200007645 as the SEBI registration number. The research and reports express our opinions which we have based upon generally available public information, field research, inferences and deductions through are due diligence and analytical process. To the best our ability and belief, all information contained here is accurate and reliable, and has been obtained from public sources we believe to be accurate and reliable. We make no representation, express or implied, as to the accuracy, timeliness, or completeness of any such information or with regard to the results obtained from its use.