Markets & You

7.3.2017

Two days from now, all TV channels will be flooded with exit poll opinions and results for the five state’s assembly elections results will be out this Saturday. We at InvestmentMitra believe that the fast developing global political and economic scenario and improving policy environment in India with its robust consumption theory will augur well for India and will reflect in stock prices and indices. With this markets look good even from 2-3 years perspective.

Equity - We advise investors to closely watch markets for next one week and invest for long term if market corrects by about 5% or more. Invest 20% of your surplus when sensex goes below 27500 levels and invest 15% of remaining every time when sensex dips by another 750 points from previous investment levels.

Debt - We expect RBI to soften its stand on interest rates and bring down repo rates by .25 to .5% by the end of this year. Overall we expect RBI to cut lending rates by about 1.25% in next 3 years. Investors will be better off investing in income funds with some exposure in dynamically managed debt funds than pure G-Sec funds.

Gold – Gold has been sturdy and stable despite apprehension of price correction. We advise to invest in Sovereign Gold Bonds as and when Gold breaches 28000. These bonds provide 2.5% interest on per annum basis with prospect of capital appreciation due to surge in gold prices in physical market.

Real Estate – To us real estate has always been a location specific subject rather a general market product. We believe government’s impetus on developing infrastructure and its push to affordable housing will bring some movement in MIG housing also by the end of next financial year. If you are ready to lock in your funds for long period (5-8 years) then you can get good value deals from the market.

Please do let us know for anything you would like to discuss or need information on any financial investments.

Happy investing!

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