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 “In investing, what is comfortable is rarely profitable.” – Robert Arnott

Financial assets had a truly rough time these past five years. Equity and mutual funds lost investors’ confidence. Real estate and gold never had it this good. Ordinary builders turned into promoters of giant condominiums. Single store Jewellers became large multi-city chains. Sales simply rose vertically. For a while, it looked like property and gold were the only businesses to be in. Everybody jumped in. Valuations of companies in real estate and jewellery soared. And then, suddenly the music stopped when the rupee fell in the middle of 2013. That was a defining event in the debate between the two schools of investing. Real estate and gold started letting down their investors. Equity and MF ‘s slowly started delivering returns. As the year closed in March, they had beaten all other investments by a safe distance. Investors have been numbed by the comeback of equity. Now, the comeback of debt instruments awaits the puzzled investors. Will they at least participate now in the grand revival of financial assets? Early trends indicate that the extremely smart ones are already coming back. So, why wait ?

Investment strategy: Be ready to pay a little more.


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