Hello Friends,
Greetings
I’d like to wish everyone a happy new year and a Happy Republic Day!
On this day in 1950, our Indian constitution went into effect.
It has the world’s largest constitution. which is India’s supreme law and establishes the fundamental rights, duties, and responsibilities of an Indian citizen. The constitution has evolved and has greatly aided our nation’s growth.
We are still developing as a country, to put it another way. Currently, we are in the process of moving from a developing to a developed nation. We as individuals can work toward a transition in our own financial plans, just as our country progresses toward becoming a developed state.
In the past, investments in assets like gold, real estate, and FDs were the norm.
The need to beat inflation is unavoidable due to rising costs everywhere. Our current savings and investments will help us overcome our future living expenses, retirement costs, etc. With the advancement of technology, we now have a variety of investment options, including equity, ETFs, peer-to-peer lending, fractional real estate, and more. Equity stands out above all other investments. Long-term compounding of your funds can be achieved through mutual funds or direct equity. I just summarised the following intriguing article that I came across:
Any country experiences its largest bull market when its economy grows from $2 trillion to $5 trillion. Three countries have accomplished it:
China went from $2 trillion to $5 trillion in five years (2004–2009). The Hangseng increased by a factor of four, from 8500 to 32000 during this time.
It took the US 11 years to increase its GDP from $2 trillion to $5 trillion (1977–1988). The Dow Jones increased by 15 times from 700 levels in 1977 to 12000 levels in 2000.
Japan’s transition from $2 trillion to $5 trillion took 8.5 years (1978–1986). The Japanese stock market rose 14 times, from 2000 to 37,000, between 1978 and 1991.
Therefore, historically, any country’s “bull market” begins between $2 trillion and $5 trillion!
Any guesses as to India’s position?
In fact, it’s about to blow up any second. Journey has just started. For the next 20 years, I personally plan to make a sizable investment in equity to secure my future and the future of my children. Any decline in the indices (the Nifty or the Sensex) or specific stocks this fiscal year may mark the decade’s lowest point. This could be the year to stockpile and make significant equity investments. General elections are scheduled for 2024, which could drastically alter India’s history.
Future developments will start to show the benefits of the foundation the current administration laid. Put them into action for your financial transition system along with the nation’s transition.
This Republic Day, transit your financial plans.
Thank you for your time. And please continue to provide feedback.
About the Author :
Nitin Bhandari, a passionate & certified research analyst with over 15 years of experience in Equity Markets and founder of Heet Investment, a financial broking firm in Bengaluru. You can get in touch with him on nitin@heetinvestment.co.in