What returns should equity investors expect in 2025? HDFC Securities advises

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If you invest in equity, then this is important news for you. There are only a few days left in the new year, so you will have a lot of expectations from the new year. But HDFC Securities has given a special advice to equity investors regarding the new year. According to PTI news, domestic brokerage says that after several years of boom, equity investors need to reduce their return expectations in the year 2025.

Where will Nifty be at the end of 2025

According to the news, HDFC Securities has also said that NSE’s 50-share benchmark, Nifty 50, is expected to end 2025 at 26,482 points, up more than 10 percent from Thursday’s close of 23,951. Dheeraj Relli, Managing Director and Chief Executive of HDFC Securities, also said that equities will outperform any other asset class in 2025, and India’s long-term story remains intact.

Special advice for investors entering the market after 2020

Reilly says that for many years, the markets have delivered high returns. In the new year, investors will have to lower their expectations. The Nifty benchmark has gained 10.22 per cent so far in 2024, characterized by some year-end selling by foreign portfolio investors as they got better returns in other markets amid a slowdown in growth in India to a seven-quarter low. Most investors in the market are those who entered the market after 2020 and have never seen a sharp recovery in their investment journey, making it necessary to set expectations accordingly.

Where to focus in the new year

Brokerage HDFC Securities would advise investors to bet on large caps rather than mid and small caps, which have performed well in the last few years. He said that more than 67 per cent of the allotment should be to large companies, which have seen many business cycles. The rest of the allotment can be to small and mid-caps. This should be done on a very selective basis at the unit level. In the last two to three years, about 80 per cent of small and medium-cap stocks have given positive returns to shareholders, and in the new year this figure will be limited to only 20 per cent of stocks that are giving profits.