2023: It’s a relative world

As we enter the year 2023, it's important to remember that everything is relative. Our own perspective shapes how we view the world around us, and it's crucial to have a well-thought-out perspective in order to lead a meaningful and fulfilling life.

In today's age of information overload, it's easy to get lost in the sheer amount of data available to us. We are constantly bombarded with information from various sources, and it can be overwhelming to try to process it all. That's why it's important to focus on what's truly important and not get distracted by the noise. With the average attention span of an individual being less than 10 seconds, it's crucial to make every moment count.

This is where the concept of the "Art of Boring" comes in. At DSP Investment Managers, we believe in staying focused on the fundamentals, prioritizing quality, and respecting valuations. We're not in the business of making wild predictions for the year ahead, but rather, we prefer to stick to what we know works. In a world where sensationalism and attention-grabbing headlines reign supreme, it can be easy to get caught up in the hype and lose sight of what really matters. That's why we choose to take a more measured and disciplined approach, focusing on the basics and avoiding the temptation to chase short-term gains.

In our latest note penned by our Equity team, we begin by taking a look at how Mercedes has built a "winning culture." This is a company that has consistently outperformed its competitors and achieved a level of success that many companies can only dream of. So, what is it about Mercedes that sets them apart? According to their CEO, Dieter Zetsche, it's their focus on innovation and continuous improvement. Rather than resting on their laurels and becoming complacent, Mercedes has always been willing to take risks and embrace change in order to stay ahead of the curve. This has allowed them to consistently outperform their competitors and maintain their position as a leader in the industry.

But that’s not all. This note will also delve into some of the other key issues that have impacted the market in recent years. For example, we examine how the Federal Reserve's policies impacted market returns in 2022, the role of DIIs (domestic institutional investors) in the Indian markets, India's relative outperformance, and the state of corporate health in India. These are all important factors that can have a significant impact on the market, and it's crucial for investors to have a good understanding of them.

In addition to these topics, we also delve into some of our ongoing projects at DSP Investment Managers. For instance, we discuss JARVIS, our in-house analytics tool, which helps us to make more informed investment decisions. We also touch on our foray into sustainable investing (ESG), which is an increasingly important area for investors as concerns about the environment and social issues continue to rise. Finally, we address the elephant in the room: our performance (well, underperformance). It's important to be transparent and honest about these issues, and we are committed to learning from our mistakes and constantly improving.

As we move forward into 2023, we urge investors to take a balanced approach. While valuations may be stretched in the short-term and concerns about a global slowdown may dampen sentiment, we remain optimistic about India's structural growth in the long run. It's important to remember that not participating in the market can be a major risk for investors, and it's crucial to focus on long-term gain rather than short-term pain.

We hope you'll take the time to read our full note and share your feedback with us at [email protected].

Click below to read the full note. It's long, but we promise it's worth it!

And since this is our first post for 2023, we wish you a very Happy & Prosperous New Year :)