Is It a Good Time to Invest

80% investors make below average returns because they invest when the market is highly priced with a 3 - 5 year horizon.

Is It a Good Time to Invest

We see that investors who invest with a 10 year horizon, have a higher potential to make good returns by staying invested.

Let's find out when is the right time to invest in equities

The PE scale serves as an objective measure of how pricey the markets are at a given point in time. It shows the investor how much he is paying for every rupee of earnings

Mouse over on the below sections to know more

Cheaply Priced

When PE < 16, only 1% net money flow was experienced
Past 1yr Return
Return investors saw before investing.
P/E
3ys Return
5ys Return
Returns investors made 3/5/10 years thereafter.
10ys Return
-2.5
<16
28.9%
29%
17.9%

Fairly Priced

PE between 16 - 19, 19% net money flow was experienced
Past 1yr Return
Return investors saw before investing.
P/E
3ys Return
5ys Return
Returns investors made 3/5/10 years thereafter.
10ys Return
16.5
16-19
18.2%
19.2%
15.4%

Expensively Priced

When PE > 19, 80% net money flow was experienced
Past 1yr Return
Return investors saw before investing.
P/E
3ys Return
5ys Return
Returns investors made 3/5/10 years thereafter.
10ys Return
30.2
>19
3.3%
7.8%
14.3%
Current Market PE : 21.2

Source: Latest PE data of S P BSE Sensex from Bloomberg

Cheaply Priced
PE<16

Moderately priced
PE 16-19

Expensively priced
PE>19

What should you do?

  • If investing in the RED ZONE, keep a 10 year+ horizon
  • Invest in the Green & yellow zone, if looking at a shorter horizon

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about us

Wealthclock makes investing simple, safe and convenient. We offer mutual fund investment and financial markets advisory over the friendly and interactive online platform that makes investing fun for all first-time investors. With the help of advance tools, detailed market analysis and team of expert advisors, Wealthclock ensures that the users are on top of their game. Come and watch your investment grow.

contact details

Wealthclock Advisors, Manish
Mahal, Off Veera Desai Road,
Jeevan Nagar, Andheri West,
Mumbai - 400053 Maharashtra

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ARN:115995

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