Tweet Buster: \'Flip\' trade and what if SIPs cannot make you rich

NEW DELHI: The stock market's surge from March lows has been stellar. All those who raised doubts about the sustainability of the rally are coming out looking like fools.

But many on Dalal Street still believe you can hop on to the bandwagon and ride the rally for some more time to come. Although, this advice comes with a set of riders.

Aveek Mitra, founder and CEO of Aveksat Financial Services, says the breadth of the market has not been so wide in last three years. So investors can gain from investing in this market, but they just need to be careful and not invest blindly.

Mitra says one can go on investing without the aid of fund managers, if she is able to invest the time and does not let behavioural biases influence decision making. He believes if someone can manage to overcome these two obstacles, there is no better way to invest one's money.

But what PMS manager and market veteran Basant Maheshwari has to say might be a little unsettling here. Maheshwari in a tweet said, "Except in theory and presentations, (no) one has ever gotten wealthy (achieved financial freedom through stock market investing) doing SIPs." You have to put your neck on the line if you wish to make money, he says.

Moving on to sector-specific or stock-specific investment ideas, here are some from independent market expert Sandip Sabharwal and PMS fund manager Ravi Dharamshi.

Sabharwal says if you believe a Covid vaccine can be developed over the next few months, you should invest in businesses hurt by the coronavirus as long as they have strong balance sheets. He labels it as a 'flip trade' for 2021.

He also advises avoiding the sovereign gold bond issue. "I reiterate ignore this one, wait for the next tranche. Gold prices could correct sharply near term before rising long term," he tweeted.

Dharamshi still finds quality in pharma names. Should you invest?

On a lighter note,
While the US has the FAANG, which is fetching investors handsome returns, Sunil Singhania has his eyes on the Indian counterpart back home - 'JALSA'.