Niveshvidya newsletter - Aug 2025
This newsletter was shared with our esteemed investors, detaling the importance of long term investments and the nitty gritties of the ongoing tariff war.
5/8/20242 min read
Dear Investor
Greetings!
While writing this letter, Nifty is at 24363, just above the 200 DMA and below the 50 DMA. Nifty peaked at 26200+ in Sep 2024 before the volatility kicked in. As I always say, this is the nature of the beast and the returns can never be linear, it will always be cycle of ups and down, and the only way to build wealth here is to stay invested in both the cycle. There will be periods of zero or negative returns and there will be periods of extraordinary returns.
If you are invested in good mutual funds, patience will pay off sooner or later. If you have confusion about your fund holdings – get your portfolio reviewed today, without any charges.
The current volatility in the markets is happening because of the high uncertainty due to geo political tensions and because of the tariff war getting esclated from the US. Let me unfold the tariff mystery in below section piece by piece:
What is tariff?
A tariff is a tax or duty imposed by a government on imported goods or services. Its primary purposes can include:
Ø Protecting domestic industries → By making imported goods more expensive, it encourages consumers and businesses to buy locally made alternatives.
Ø Generating government revenue → Especially important for countries where tariffs are a significant source of income.
Ø Negotiating or retaliating in trade disputes → As a tool in trade wars, like the current India–U.S. tensions.
What is US trying to achieve?
As per 2024 data, US imported around $87.3 billion while it exported only $41.5 billion resulting in a near $45.8 billion trade deficit for the U.S. We can also feel this around, when we buy iPhone, a foreign made car etc.
What all we export to the US, which will have impact from the tariffs?
Top 5 exported categories (2024):
Pharmaceuticals (~$10.9 billion)
Pearls & precious stones (~$10.2 billion)
Petroleum products (~$2.9 billion)
Telecom instruments (~$2.2 billion)
Ready-made garments (~$1.8 billion)
Tariffs will make the products from these industries expensive and can reduce the demand from the US customers. It might also somewhat hit our GDP if continued for a long time.
This is the story of tariffs and the only way out of this situation is negotiations. Diplomats from both countries need to sit together and chart out a win-win path for the progress of both countries.
Markets may be in downtrend in the short term but these are the situations which will remove excess valuations from the overvalued stocks and will be healthy for long term view of the markets. SIPs into good funds are the best way to deal with these uncertainties and those who have started SIPs in last one year have seen positive returns even when the markets are overall negative.
Again, staying invested is the key!
If you want to build a customized mutual funds portfolio, which caters to your financial goals, feel free to reach out and let’s discuss.
OR
if you have an existing portfolio and want to get it reviewed, lets discuss!
Best Regards,
+91 8823021799 | Pawan@niveshvidya.in