Invest in equities? The index is already up 23% on a calendar basis…why should I invest in equities NOW?
Right? that is the first question that popped in your mind right now, did it not?
Well let us look at the reasons why you should be buying:
1. I have always said this : YOU HAVE NO CHOICE AT ALL: If you have Rs. 5000 to invest every month, where will you invest the same? It is only the equity market which allows you to invest small amounts on a regular basis.
2. P Chidambaram wants you to: really there is a lot that he is doing to make you invest in equities. No nothing positive, but squeezing out the returns in other asset classes! He is leaning on the RBI to reduce interest rates – not at all worrying about the suppliers of money. He wants to push RGESS, and he will do it well. More and more companies are opting for NPS – which means more money will come into the index. You cannot fight the big bosses, right?
3. Forget fighting PC, Ben Bernanke will set the world markets on fire with his philosophy of unending printing and zero interest rates. So as usual when the Indian markets go down FII money will come – remember net of currency fluctuation and inflation, INDIA still provides positive returns. Sadly Indians looking for 40% return in equity markets will burn their nails, fingers and hand. If yo are looking for a small positive REAL return, you will do well.
4. The technical and fundamental reasons for buying are STILL BULLISH. Even though the markets have given a good return over the past one year, and I do not like the ‘market p/e’ and some of the stocks pricing, a SIP is a good process to follow…
5. Your Retirement will be earlier than later: Immaterial of which field you are working in, retirement is going to be earlier than later…and if you do not have a big chunk of your money in equities, inflation is going to get the better of your portfolio…
more will follow…
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