8.3.2019
Over past two years Indian economy has started to recover from the
cyclical and structural bottlenecks witnessed due to policy paralysis and
because of disruptions of demonetization and GST. With these bottlenecks having
smoothened now and visible recovery in corporate earnings, credit growth and
capacity utilization picking up, improving global growth prospects brings back
the confidence to the stock markets as also seen in sustained buying by FIIs in
last few days.
Elections this year will also act as quasi stimulus for the economy
as it will encourage lot of spending by governments and the political parties.
Markets have also discounted geo-political tensions between India and Pakistan
as it is clearly established that super powers will not let the two countries go
into full scale war.
At this point of time with mid cap and small cap segments
attractively valued, we advise our investors to start increasing their exposure
to these segments. Invest in staggered manner and don’t forget to invest more
whenever markets decline offers you an opportunity. Use your money parked in
balanced and balance advantage funds for the purpose. You may also bring in
fresh investments. But strictly adhere to your asset allocation and financial
planning. Contact your investment Mitra to chart out strategy and take actions.
Happy investing!
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