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.
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.
One can indeed minimise their tax burden by utilising various eligible investment options to reduce the tax impact, and one of the most promising avenues therein is the Equity Linked Savings Scheme (ELSS).
Passive investing refers to an investment strategy of creating an investment portfolio that has a similar composition as an underlying index such as S&P BSE Sensex, NSE Nifty50 or a commodity, such as Gold. In passive investing, the investors invest with intent to replicate the returns of the underlying index/commodity.
Capex cycle is one of the most important economic trends one needs to track in the macro space as it is a critical ingredient in order to achieve a higher trajectory of economic growth in later years. Making capex decisions are usually very complex.
Prudent financial planning involves listing down the financial priorities and then steadily working towards achieving the financial goals in the desired time frame. While you may have already taken your first step towards investing towards a healthy financial future by registering a Systematic Investment Plan (SIP), it is equally important to review the investment periodically. The performance review of the investment portfolio would allow you to align your financial priorities and financial goals.
It is said, "If you don't know where you're going, any road will take you there." Just like you must know your destination before you start your journey, you must determine the financial goal before you start investing. You must have a specific financial goal in sight. Be it saving for your child's education, buying a new house or saving for your retirement, linking your investments with your financial goals help you accomplish your goal in a better way.
