INVESTMENTS: Budget 2019 - Foundation stone for New India !!!
Budget 2019 is eagerly awaited because this will be the first budget after Govt. assumed office after the historic elections. Being Nirmala Sitharaman’s first one, it will be a tricky and delicate one at the same time because the Government would like to lay path for next 5 years and can afford to take some harsh decisions due to stable majority. The Budget could kick start the sluggish Economy and direction-less Capital Markets. Possible area of concentration could be Infrastructure, Agriculture, Water, Health, Auto Sector & sick PSUs to name a few. Discipline in fiscal and Monetary front could dictate the future policy decisions. Anyway, we will come to know everything on 5th July, 2019. So, let’s focus on making Money.
Pre-Budget strategy for the Equity Investors could see market swings going from one extreme to another. In such a situation keeping cash for bargain hunting will be a good idea, because only equities can create wealth over a longer period. The key of wealth creation is to stay invested & keep adding quality stocks as and when opportunities knock the door.
Although Stock markets are hovering around their historic highs, many stocks have fallen from their recent highs, thus providing a good time opportunity to do portfolio clean-up and restructuring. Investors can use “Parivartan” – A Safe, Unique & Win-win concept, for the first time in India, to get rid of their loss-making Shares. (We will discuss this concept in details in future articles).
The balance cash may be deployed when the clouds of un-certainty on the horizon gets dispersed and valuations path is clearly visible.
Our recommendations of our Equity research team for this year’s Budget are :
Power Grid : CMP 207
Bajaj Finance : CMP 3682
Both have power to out-perform the Index and deliver 50% more than PPF returns on annualised basis. Both are Buy & Hold investments with a minimum time period of 4 - 5 years.
We, at Indiablooms will keep you posted about the progress of our recommendations from time to time, because we know that it is your hard-earned money, which you will be investing.
Our next article will be Post-Budget analysis in a crisp and simplified manner. Till then, Happy Investing.
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About the expert: Manoj Garg : MBA, CPFA, IRDA Certified (LI+GI), Ex-Xaverian has a rich experience of more than 22 years in the Banking & Finance Industry. He has worked long years as Zonal Head (East) – Investment Division in ICICI Bank & IDBI Bank and as a Regional Vice President (East) of Tata Mutual Fund. He owns Simply Invest – A Mutual Funds advisory company.
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