Beruflich Dokumente
Kultur Dokumente
January 2011
22% 20% 21% 35% 27% 31% 25% 19% 21% 26% 18% 20% 12% -2% 3% 4% 7% 13% 15% 15% 10% 13% 18% 1/23
27% 24% 22% 20% 21% 20% 19% 13% 14% 15% 15% 15% 16% 8% 14% 6% 12% 12% 0/18
Past Performance of the SENSEX may or may not be sustained in the future. * Assume Index at same level for Mar-11 for illustrative purpose * Returns for the 1 year period are shown on absolute basis ** Returns for periods more than 1 year period are shown on a compounded annualised basis Note: The base year of SENSEX is 1978-79 and the base value is 100. Please visit www.bseindia.com for the SENSEX calculation methodology
8 7.2 7
(Growth, YoY,%)
6 5 4 3 2
1951-60 1961-70 1971-80 1981-90
5.7 4.4
3.8
4.1 3.5
1991-2000
2001-10
GDP growth
Source: Anand Rathi, decadal growth is for decade ending
496
502
430 318
105
105
25
India
37
South Africa
Germany
China
Japan
USA
UK
Germany
France
World
Brazil
China
India
Japan
USA
France
UK
Rising Oil & commodities prices, persistent high inflation, increasing interest rates & high inflation are pressure point for the economy. Large supply of paper in Jan- Mar 2011 (~30,000crs)
Sail ONGC JSPL Tisco 8000crs 10000crs 7200crs 3700crs
Returns over medium term should be in line with earnings growth rate i.e., 15-20% CAGR; returns of Large caps/ mid caps should not display large divergence.
Spike in Oil prices is a key risk; reduction in fiscal deficit needs to be monitored closely Risk reward is favourable over medium to long term; allocation to equities should be increased in phases over 3-6 months
Equity Mutual Funds are one of the best ways to invest in Stock Markets.
ADVANTAGES OF EQUITY MUTUAL FUNDS 1. Well Researched Portfolios 2. Professional Management
5. Low cost
Glory
Despair
Recovery
2006 - 07 High liquidity at low rates Highest levels of land buying recorded
2008 - 09
Depressed demand, low sales Lack of trust about pricing and delivery of projects
2009 - 10
Enough signs of easing liquidity Increase in off take with stability appearing in prices
USD billion
23
22
26
23
Currently property prices present a great opportunity to investors. A peak is expected in the next 3 -5 years making real estate an attractive investment opinion. The residential segment will lead the sectors recovery: New players are expected to enter the market with properties designed keeping in mind current economic condition and consumer preferences Focus of real estate developers is the affordable housing segment which makes up 50% of the total market currently.
Evident signs of increasing investment activity in the real estate sector USD 15 billion, the sum raised by real estate firms in the past six months through QIPs
2007 - 08 2179
2008 - 09 2801
India tops the BRIC nations Real Estate Transparency Index says Jones Lang LaSalle as per their 2008 report. Investors looking at India as a long term investment destination can be confident
2009 (E) 2010 (E) 2011 (E) 2012 (E) 2013 (E)
3 Factors that SAVVY Real Estate Investor consider before they by any property
1. LOCATION
2. LOCATION
3. LOCATION
Apart from location factors that you should consider before buying Real Estate 1. 2. 3. 4. 5. 6. Future Infrastructure Development Employment potential of the city Reputation of the developer Site Plan / Apartment Plan Your cash position and budget Advantage of leverage
RISKS
1. Property prices India as compared to per capita GDP are highest in the world. 2. Interest rates are high and it affects the buying power of the buyers. 3. The financial position of most of the developers is not very good. 4. Rapid Infrastructure Development
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