Tuesday, 30 December 2014

Portfolio Strategy : December 30th, 2014 : Banks!

Continuing with my bet on the interest rates coming down in 2015, I would expect rate sensitive sectors to benefit the most from the imminent reduction.  The most obvious rate sensitive sector is financials like banks.  Now I do believe there are other sectors too like NBFCs, housing finance companies, auto and auto ancillaries, etc.  But with my limited knowledge in those domains, I am sticking with banks for now.  The bulk of my exposure to banks is through the Reliance Banking fund.  This MF allows me to pick up an exposure to banks in general and hopefully tracks the BANK NIFTY quite closely.  Another way to achieve this is by investing in GOLDMAN SACHS BANK BEES, which is an ETF that tracks the CNX Bank Index.  I haven't been investing in GS Bank Bees so far this year, but will probably do so in 2015.  

Assuming you agree with me that RBI will indeed start reducing interest rates, what other methods are you using to benefit from it?  Are there specific investment strategies that you can recommend, and we can all learn from?

1 comment:

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