Thrust on Fi­nan­cial Sav­ings Con­tin­ues

In­vestors hold­ing back should in­vest now, can use dy­namic funds to beat volatil­ity

The Economic Times - - Front Page -

Given the bal­anced stance taken by the gov­ern­ment when the FM could have been pop­ulist, we be­lieve there is scope for eq­uity mar­kets to re-rate from here. Also, there is a pos­si­bil­ity of in­creased in­flows from do­mes­tic in­vestors in the near-to-medium term and val­u­a­tions are likely to ex­pand. In terms of earn­ings of In­dia Inc., there will be chal­lenges in sev­eral sec­tors, but the low-in­ter­est-rate en­vi­ron­ment will prove to be a ma­jor pos­i­tive.

Ad­di­tion­ally, the gov­ern­ment has pro­vided im­pe­tus to the in­fra­struc­ture sec­tor, with en­hanced fund­ing for the trans­porta­tion sec­tor as a whole. We be­lieve this is one sec­tor that is likely to see in­creased in­ter­est from in­vestors in the near-tomedium term. To make the most of the in­fra­struc­ture story, an in­vestor can con­sider in­fra­struc­ture funds.

For in­vestors on the side­lines, my ad­vice would be to in­vest right away. This is with an un­der­stand­ing that there may be a case for in­ter­mit­tent volatil­ity in the near term, due to un­cer­tain­ties in the world econ­omy. Hence, the best way to cir­cum­vent such volatil­ity would be to in­vest in dy­namic as­set al­lo­ca­tion funds.

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