Modi 2.0: Your Money & The Promised Land

Almost 72 years since independence and 16 Lok Sabha elections later, India seems to have identified the chosen one who will lead the country to glory (read as economic progress & social development)! This is perhaps the only time since independence that a governing party has been re-elected and rewarded with a clean sweep majority.

Major economies around the world are grappling with a variety of issues right from trade wars to Brexit ramifications, crude prices while the biggest impediment for India was uncertainty stemming from political instability. With this uncertainty out of the way, the road ahead offers more clarity.

I’m taking this opportunity to substantiate the euphoria & highlight India’s growth story potential that will help you decide and build your financial future here.

 

— Piggybacking the robust economic growth —

“We will sustain a growth of 7.5 to 8 percent per year” Modi was quoted saying while delivering a keynote speech at the Shangri La dialogue last year.
India is, in fact, poised for an economic turnaround on the back of improved capital flow, pick up in manufacturing, depth of global engagements and improving control on domestic macro-economic factors.

GDP

The key takeaway from the above graph is that independent India took over 60 years to enter the trillion-dollar economy club but only 7 years to double-up! The future beholds a $4 trillion economy and every Rupee invested in this economy is expected to grow in a similar trajectory.

Let’s make this more about you and less about the economy

I’ve been interacting with quite a variety of investors since years and can now confidently say, I DON’T understand investors! This election season only validated my situation where the more I know, the less I understand.Here’s the paradox I observed this election season –

Pre-election:

Nobody wanted to invest since they believed that markets were too volatile & in a “correcting” phase. There were also concerns that the impending election results would erode their wealth.

Post-election:

Nobody wants to invest because everything went well, and markets touched all-time highs before they got a chance to enter – will wait till volatility resurfaces and markets correct.

Here’s what you can do as an investor to make the most of this new-found political stability & imminent economic spurt – don’t think, start doing. As long as you have long-term financial goals and have the right portfolio construct, the market level at which you enter does not really matter. While entering at current levels may entail a probability of minor loss in the short term but hopping onto the fence entails a definite loss of time & opportunity.

As an investor, it is recommended you design a portfolio with apt asset-allocation & high-quality funds and deploy it in the right way. While the mobile app takes care of all these parameters, you must reach out to our team in case there’s any concern or query that’s stopping you from participating in the Indian growth story.

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