Fear and insecurity have gripped Dalal Street again. But while the market professionals are still betting big, mutual fund investors, especially the ones who’ve never experienced a crash, are petrified.
As we head into 2019 the question I am asked most often is “What is my view of the elections and how it will impact the market”.
To this, my preferred answer is: ‘I don’t know’.
Post the results of the three state elections the most common topic of discussion these
Mutual funds are a potential investment vehicle to cater to multiple needs from short term parking of funds, tax savings and wealth creation. While talking about mutual funds, it is essential to be aware about the concept of volatility and how volatility can impact your product selection.
It is generally believed that economic growth is good for the stock returns. This belief holds that there is a positive correlation relation between the real economy and capital markets. Therefore it should make sense to invest in stocks of countries where the economy is stable and which has strong growth prospects.
Whenever you are travelling towards any destination, you look for directions to reach that destination. Likewise, your financial advisor may act as your navigation to achieve your financial goals within the desired time.
Election 2019 is underway and even as the summer heat is yet to pick up, the heat and dust of electioneering are raising the temperature. It is a good time to pause and think about the challenges and opportunities that would face the incoming government.
Sector funds are those mutual fund schemes, which carry the mandate to invest in the companies working in the specified sector predominantly. Such funds invest a minimum of 80% in equity instruments of that particular sector. For example, a banking fund can help you have a focused investment in banking stocks.
Come elections, and the whole investing fraternity gets busy predicting the effect they might have on the stock market and how will they make the Sensex dwindle. The upcoming General Elections 2019 are not untouched by the speculation either, especially in the aftermath of the state elections when a lot of predictions went haywire.
Warren Buffet once said, “do not save what is left after spending; instead spend what is left after saving.” This quote emphasised prioritising savings in our financial lives. However, a lot of modern day youngsters prefer doing precisely the opposite – living in the present and spending on luxuries rather than focusing on the saving for the future.
