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.
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.