Note by Chirag Mehta, CIO- Quantum Mutual Fund on the occasion of Independence Day.

 

India's True Independence Shines Amid Global Economic Shifts

In today's rapidly evolving world, where economic dynamics are constantly undergoing seismic changes, India emerges as a resolute beacon of resilience and growth. Despite recent global developments, including the US debt downgrade, which led to a momentary decline in the equity market, India's economic strength remains unwavering. The country’s economic indicators have retained their stability, showcasing resilience and independence.

Embracing India's Growth Story with Equity Investments

India's growth narrative continues to surpass expectations, propelling it onto the global stage.

Though benchmark indices Nifty 50 and Sensex had a minor setback due to the sentiments of global markets, the broader markets performed well.

Indicators in favour of India’s growth narrative:

• Inflation within tolerance level: Though temporarily inflation may inch higher due to high food prices such as tomatoes and cereals, the average is still likely to be within RBI’s target range.
• Strong Flows: While FIIs were net buyers to the tune of Rs. 13,922.01 crores in the month of July, till date as of Aug 9th, they have sold shares worth Rs. 4804.47 crorers. However, DIIs have supported the domestic markets and have bought shares worth net Rs. 4149.49 crores. Even though FIIs can be quite volatile, India’s enduring economic resilience and policy stability in contrast to other EMs will continue to remain robust, thereby attracting FII flows in the medium term.
• Services growth: Indian Services PMI experienced a remarkable upswing, reaching to a 13-year high in July.
• Decreasing Unemployment: Unemployment rate decreased to 7.95% in July, down from the June figure of 8.45%, due to the increased demand in agricultural sectors after the good progress in monsoon.
• Growing GST collection: The government GST collection continues to be robust in July, surpassing Rs.1.65 trillion mark, 11% higher as compared to the same period last year.

Take advantage by investing in a diversified portfolio of equity investments and gold, particularly within India's current economic climate where growth on an ascendant trajectory.

Diversified Equity Portfolio: A mix of Value and Growth

Equity market tends to go through cycles. While Value investing tend to invest in matured companies that offer relative stability, growth style invests in companies that are geared for growth sooner rather than later. By investing in a mix of value and growth style of investing, you can have the potential to generate risk adjusted returns over the long term.

Gold: A Path to Financial Freedom

Incorporating gold into your investment portfolio can augment its resilience and contribute to long-term stability, fortifying your portfolio. Gold generally has a negative correlation with equities and helps safeguard your portfolio from the equity market stress during uncertain times.

Key Takeaways

We believe Fitch’s downgrade of US rating would have only a limited impact on India’s real economy. 

India's capacity to withstand such challenges stands as a testament to its unwavering economic framework. 

Be a part of India's unwavering trajectory and make your way towards sustainable growth 

Disclaimer, Statutory Details & Risk Factors:

The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.

Mutual fund investments are subject to market risks read all scheme related documents carefully.