Wednesday, 27 August 2014


                                                  IT IS A BIG RISK OF NOT IN EQUITY

Before and after election market had gone from 21,000 to 26500. Rise of 5500 Points in only 3 months. Now everyone is thinking up to where it will go? KAHA TAK JAYEGA and what investor should do now?


SENSEX 1979  1989     100  to  800        8 times        SENSEX  1999  2009  4000  to   20000 5 times  
SENSEX 1989  1999     800 to 4000        5 times         SENSEX  2009 2019   20000  to  ?           ?         

       
Four main reasons for the Bull run:

       Market isn’t a satta Bajar, didn’t run on luck. It is a reflection of our economy.

In 1984 when Rajiv Gandhi came into power, our market rises 70% in next 3 years.
At this time  our principal driver (Mr Narendrabhai  Modi) come with a strategic clarity, and this driver of our  economy has a multiyear track record of past.
His body language, work without fear system clears more files of equities.
       This rebound comes after extended downtrend. Experts says one should always invest in equities when:                  

  •          IIP (Industrial Production) is down.
  •          Inflation and interest rate is high.
  •          Fiscal deficit is high. 
All the above three scenario is now at present.

      INDIA is now a rare island of stability. In all over the world, they are facing political, financial & lower GDP issues. Compare to them our economy is at the cusp of historical positive change.
    All the sector like banking, infrastructure, power, aviation… all issues on the feet of good governance. All our ministry are working 12 hours a day, so project & files clearance become faster.
 So what investor should do?
Investor shouldn’t look for the small events, they should think for the long term changes in our economy.
Instead of looking market levels investor should focus on their goals.
It they want money in 1 to 3 years period, they should go to debt funds.
It their requirement of money is between 3 to 5 years they should select Balance funds.
And if they want to create a wealth for long term for their any goals they should do more allocation to equities.
Magic of SIP drop by drop, money every month helps you to beat inflation & risk of equity reduces.
Happy Investing



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