December brings with it cheer and hope. Hope about what the new year will bring and cheer about the season’s festivities.

And if your portfolio contained Equities (hopefully it did), then definitely you would have reason to be happy and cheerful. You would know that Indian equity is where all the action was in 2023

Year end is also good time to introspect about the year gone by and prepare for the next year.

2023 was a remarkable year for the Indian equities, With more than 200 IPOs in the year, India literally set a new record of sorts.  According to an EY Report, the third quarter of 2023 saw a staggering 21 IPOs in the Indian main market, compared to just four in the same quarter of 2022. The proceeds raised during Q3 2023 amounted to US$ 1,770 million

Not to be left behind, retail investors ownership in India’s top Nifty50 companies too increased, climbing from 6.16% in September 2019 to a record 6.98% in September 2023

Thanks to the retail participation, who have pumped money into the stock market through mutual funds and direct investments, the benchmark index surged 22.5% over the last nine months. The number of active demat accounts on the Central Depository Services Limited (CDSL) platform crossed 10 crore last month.

Mutual Funds too saw a lot of action, the number of retail portfolios increased by around 16% to 12.92 crore in November this year from 11.18 crore in November 2022. The contribution of systematic investment plans (SIPs) reached an all-time high of Rs 17,073 crore in November 2023.

Overall, the Nifty 50 and S&P BSE Sensex gained 16.79% and 16.08%, respectively, in the current year so far. The most action was seen in the Midcap and small cap companies with NIFTY Midcap 100 41.6% and NIFTY SMALLCAP 49.9%

Whilst we had a good run up in the equity market in 2023, and there’s euphoria all around, a word of caution to not get carried away by these returns. Investing in equities is like a roller coaster ride, it will take you on a journey filled with thrill, turns, and heart-pounding drops. And you won’t have any control over it.

How then do you prepare for this experience?  Firstly, accept that the external factors are not in your control. Secondly control the controllables. Prepare your financial plan in such a way that it protects your from any potential loss and at the same time rewards you when there are potential gains.

To see what you can control, refer to this checklist –

Goals – Which goal did I achieve? Any new goals to add ?

Saving – How much was I able to save , how much more can I save in the coming year?

Investing – How much did I invest?, How much more should I invest in the coming year?

Debt – What is my debt situation? Is it under control? Can I close any of the loans partly or fully in the coming year?

Health – What did I do for my fitness? Am I financially prepared incase of any health scare in the family?

Spending – Any major spends in the coming year that I need to plan for?

Once you have reviewed all these, you are more or less in control of your financial life. Put on your seat belts, sit tight like you would on a roller coaster ride, and leave it to the markets to reward you for your planning and patience.