Equities and gold shine in FY 2023: What should be your portfolio strategy for FY 2024?
real estate also made a comeback after lying low for the last few years. In a rare instance, all four asset classes did well in the FY 2023. Let us discuss the performance of these asset classes in FY 2023, and what should be your portfolio strategy for FY 2024.
Domestic and international equities had a stellar run in FY 2023. The returns from domestic equities were as follows.IndexFY 2023 returnsNifty 5028.61%Nifty Next 5060.39%Nifty Midcap 15056.50%Nifty Smallcap 25063.07%Nifty Microcap 25085.12% (Source: https://www.niftyindices.com) The above table shows how the large caps gave good returns of 28.61% (Nifty 50) and 60.39% (Nifty Next 50). However, the broader markets outperformed the large caps.
The Nifty Microcap 250 Index was the best performer, with a stellar 85.12% return. Among the sectoral indices, the Nifty Realty Index was the best performer, with a return of 132.52%. The real estate stocks did well on the back of good sales, lower inventory, better realisations, new project launches, lower debt, etc.
The second best-performing sector was auto, with the Nifty Auto Index zooming ahead with 74.94% returns. Along with India, the US equity markets also rallied. The returns of the three major US indices were as follows.IndexFY 2023 returnsNASDAQ38.49%S&P 50027.86%Dow Jones Industrial Average (DJIA)19.63% (Source: Motilal Oswal Mutual Fund) Note: The above returns are in US Dollar terms.
The tech-heavy NASDAQ led the rally with 38.49% returns, while the broader S&P 500 Index followed with 27.86% returns. In FY 2023, we saw how the domestic market gave excellent returns, with mid and small caps leading the charge. A repeat of a similar performance is highly unlikely.
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