And for a Friday when Nifty is almost at 21,000 and BSE at 70,000, some thoughts….. some musings…..
Irrespective of what Politicians or left oriented Economists may say, I believe the share index of a country is a fair reflection of the state of the Economy and business confidence into the future. This week Indian markets reached an all time high at 4 trillion $s. India is now ranked 5th amongst the top markets of the World. To get a perspective, UK is 8th and Germany is distant 11th. The investments sentiments have turned positive as overall the Ukraine and Hamas-Israel wars are now discounted and Oil has fallen below 70$ after a long time. This has encouraged FIIs and FPIs to reenter the Indian Stock Markets. This augurs well for our country.
Whenever markets are high, it creates lot of buzz and many like to enter the stock markets. That is dangerous. However, every earning person must have some investment in the stock markets as that is the only product which can beat inflation over a longer time horizon. The thumb rule, 100 percentage = investments percentage in stocks. So, a young 30 year old Professional, as he stabilises in his job, 70% of his savings must be in Equity related products for him/her to create a meaningful Corpus over the decades till retirement. Ofcourse for oldies and pensioners, if not into active stock trading already, the best option is to take a SIP of the monthly plausible savings amount into a Hybrid Mutual fund. This, after exhausting the Sr. Citizen’s Saving which gives 8.1 % return; the highest limited to 30 lakhs. PPF earns 7% but plus factor, fully tax free limited to 1.5 lakhs every year. Thus every scheme must be evaluated in terms of your return post tax and considering a minimum 6% inflation.
The Global environment continues to be fairly volatile. But India is currently in a sweet spot. Let us take the full benefit by saving and investing the Smart way, the best “post-tax return” way, the SEEGOS way.