Saturday, February 11, 2017

To invest or not in equity right now

It feels like a very tentative time as of now.. most avenues of investment in india seem to have disappeared.

1. Fixed income is on its ways down with the lowered interest rates.  However the latest review by the RBI seems to have moved from accommodative policy to neutral, which basically means that the rate of reduction in the interest rates has stemmed as of now.

2. Real estate

With the latest budget, it has become more expensive to buy real estate as an investment. The interest we paid on second homes is no longer available beyond 2 lakhs per annum to adjust against income earned.
With the  real estate prices going down and the rental returns not more than 1-2% per annum.. this is no longer an avenue for investment .

So that leaves us with equity ...there is no option  but to invest in equity.. and it makes it even more important that we think about how we spend time on learning financial fundamentals and stock picking

There is no other option.. Let's get going..it's simplefinancialsense

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