“I am a better investor because I am a businessman and a better businessman because I am no investor.” – Warren Buffet
By now you must have been bombarded with lot of budget analysis by TV channels, news-papers and from whatsapp & YouTube University. We don’t want to bore you further on nuances of budget. Should you have any specific query on budget, you may write to us and we would be very happy to answer your queries.
Market have welcomed budget with full josh and has started rallying again. It seems like the beginning of the Big Bull Run that we have been talking about for couple of years now. Many of you might feel left out. Some of you will still remain hopeful of some correction to let you in. We at InvestmentMitra believe that his budget has laid a good foundation of sustainable growth over long term than going in for any short term quick fix options. Stock markets reaction is testimony to that.
In our communication last Thursday we had advised you to start putting in good money into equity markets. Many are still hopeful that the way market has risen so sharply, it should correct also. We at InvestmentMitra don’t know if the market will correct very soon, what we know is, such phases of correction and rising again are integral part of the markets. That’s what is called volatility and makes it risky option for short term investments.
We don’t see any great reason for markets to correct by large numbers very soon except for US stimulus package – if it is much below the market expectations. RBI’s monetary policy needs to be aligned to the budget announcement and we don’t see any deviation from the previous stance, it may get better even.
What should you do – You must complete portfolio rebalancing latest by May, meaning whatever money you have to invest in equity, should be invested by then. Those invested in long term bond funds may relook at their strategy as this budget may cause some inflation which if goes beyond the tolerance level, will force RBI to increase interest rates. As usual balance advantage funds remain our favorite for moderate risk investors with investment horizon of 3 years and more.
Please do let us know for ay query you have on budget or on your investments. You may write to us info@investmentmitra.comor whatsapp to 9958447700 or 9254673750.
Thank you.
Happy Investing!
Team InvestmentMitra