September 02, 2019.
Re: 1) Our Programme on `Creation of Wealth’ 2) Current Economic and Market Situation 3) Asset Allocation while Investing.
Greetings on this auspicious day of Ganesh Chaturthi and Jain Sanvatsari. Mitchhami Dukkadam.
We have been organizing our signature programme on `Creation of Wealth’ every year. 10th annual programme is scheduled on the Sunday, the 22nd September 2019 morning from 10 onwards at Platinum Jubilee Hall SIECC, Sarsana, SURAT. In addition to completing a decade in Fund Management, this is our Silver Jubilee Year. So this is a special occasion for us.
Theme of this programme is `Preserve and Grow Your Wealth’. Investing has become different and difficult process in last couple of years. In the overall scenario of recession, it is perhaps more important to limit downside. Dimensions of asset allocations are changing. We are going to give presentations on numbers of investment subjects that have been gaining significance. We are going to have a distinguished guest Mr. Milan Ganatra from Mumbai with excellent background in Asset Management. He is going to talk on newer avenues. You can look forward to very good information and presentations on `Preservation of Wealth’.
Please register on +91-261-2206000 and make it on time to the venue.
If we visit show-room, there are no customers. If you meet businessman, he would invariably tell that there is no business. There are incomplete projects, factories are flooded with inventory. Liquidity has dried up in the system. Everyone is worried. GDP growth rate is just 5%.
Geo-political situation is also dicey. US and China have trade-wars with flip-flop exchange of statements every day. BREXIT is proving to be a headache for UK as well as for Europe. Our own neighbor Pakistan is restless after removal of section 370 from Kashmir. All these are adding to economic slow-down.
Is this a time for Government to do something? Yes, government is taking measures to stimulate growth. It has rolled back some tax proposals. Yet we cannot say that we should be out of wood. This time the medicine required is stronger.
Stock Market is showing mixed down trend. Whereas it goes up on prospects of long term, it hick up and down on news on day to day basis. Market will revive but may take time. So my suggestion is to hold on with the good equity investments in stocks/mutual fund. There is no need for panic. No need to sell. If you have money, please invest in phased manner, over next 5-6 months. Returns on equities in future should be little lower than earlier years. Considering lower inflation and lower rate of interest, this may not be bad in real terms.
Parameters of risk and return are changing. A completely new and different approach is required to the subject of Investment and Asset Allocation. Equities do need allocation, but may be lower than in past. Debt option comes up at a higher weight. Newer options of Newer Economy call for study and needs to give space in allocation.
India is US $ 2.7 trillion economy. It is going to be US $ 5 trillion economy in next few years. Where will new US $ 2.30 trillion come from? This new GDP of US $ 2.3 trillion will mainly come from New Economy. Investing in this New Economy can be an interesting proposition. For example, investment in start ups. In a recent TIE event, few start ups were showcased as opportunities for investment. There are high risk, high gain investments. We need to understand them and evaluate. We can make such investments in startups via AIF (Alternate Investment Fund) route also.
Our role is to bring such opportunities in forefront. We are playing this role well. We have formed a new group under `Connect CONCEPT’. We are bringing good investment opportunities to your notice through this networking.
We are studying all these. We should be in a position to guide actively through our Advisory services in this fast changing environment. Please connect with us for all types of investment opportunities.
Happy investing through CONCEPT.
[ Chairman ]