November 19, 2019
Over past two years Indian economy has started to recover from the cyclical and structural bottlenecks witnessed due to policy paralysis and because of disruptions of demonetization and GST. With these bottlenecks having smoothened now and visible recovery in corporate earnings, credit growth and capacity utilization picking up, improving global growth prospects brings back the confidence to the stock markets as also seen in sustained buying by FIIs in last few days.
Elections this year will also act as quasi stimulus for the economy as it will encourage lot of spending by governments and the political parties. Markets have also discounted geo-political tensions between India and Pakistan as it is clearly established that super powers will not let the two countries go into full scale war.
At this point of time with mid cap and small cap segments attractively valued, we advise our investors to start increasing their exposure to these segments. Invest in staggered manner and don’t forget to invest more whenever markets decline offers you an opportunity. Use your money parked in balanced and balance advantage funds for the purpose. You may also bring in fresh investments. But strictly adhere to your asset allocation and financial planning. Contact your investment Mitra to chart out strategy and take actions.