Wednesday, 2 August 2017

There Is No Alternative (TINA) to Equities

                There is no Alternative To Equities

The  Equity markets have taken another leap and risen to 33600 levels. SBI has further reduced the deposits to 6.25% per annum which make our stand vindicated that small saving interest rates are bound to go southwards and Equities are all set to outperform other asset classes for coming 4-5 years.

We are hopeful that teething problems in GST will be resolved by March 18, along with fresh capital infusion in PSU banks, which should help credit off-take in PSU banks as well, we are hopeful that Equity Markets should do well for at least next 4 - 5 years, if not more.

We recommend to invest in Equity Mutual Funds via SIP/ STP route and use corrections (if any ) to increase the allocations via Lumpsum investments.
Let’s see what all investment options do we have:

Savings A/c :: SBI cut savings rate from 4% to 3.5%

Fixed Deposits:: Interest rates have come down from 8% to below 7% in last 2 years and expected to come down even more. Interest on FD & RDs are subject to TDS and clubbed with your income slab. Post tax return 5% or less at 30% slab.
savings rates
Gold / Silver: Has been stagnant for last 5 years and returns are flat to negative in this tenure. Expected to remain in a range in future as well.

Real Estate: Has been sluggish in last 3-4 years and should remain in a range for next 2-3 years at least maybe more.

Debt Funds::  A solution provider for all kind of needs for all individuals, whether conservative or aggressive. Gives 1.5-2% more post-tax returns per annum than fixed deposits with Liquidity as per the requirement of individuals/ corporate.

Equity/ Equity Mutual Funds ::

Has been consistent last 35 years and has given compounded 15%+ CAGR return. As per the current scenario at 32500 levels, the markets are poised to leap to new highs in years to come. There is No Alternate (TINA) to Equities/ Equity MF. Invest in Equity Mutual Funds through SIP for Wealth Creation.

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