In last one year, markets have given decent returns and we all as investors in Equity and Balanced funds have largely been benefited by this.
The important thing is what next? Here is our market outlook in the near future…
We continue to be bullish on equity markets from a long term view but at the same time expect some volatility in near term.
Fixed income as an asset class is not advisable as rates are below 7%.
We recommend following things in present market scenario:
1. Increase SIPs in Equity mutual funds which will allow us to enter the markets in staggered manner and create us huge wealth in long term.
If one would have invested Rs. 2000 per month for last 20 years ( total investment of Rs. 4.8 lakhs) the current value would have been staggering 1.06 crore. This is a real example.
2. We advise Balanced funds and Equity income fund for lumpsum investments.
3. Renewal of FDs should be avoided and money should be invested in equally safe 9% tax efficient funds.
