For Investors Budget is a Non Event

Most investors (consider it’s you and we are writing this for you) suffer on one thing… You all plan for their life goals which are anywhere between 5 to 35 years away but start focusing on events which may or may not affect their investments in short term.

We at VRIDHI regularly plan for Long Term Life Goals of people, and then ask You to focus on investing in a disciplined manner. You invest for some months and as the fund values start increasing start worrying about silly things like budget and then start calling us. We are not blaming You for this behaviour, after all You are a human being and supposed to be behaving like this..! As Advisors it is our responsibility to unconfuse You, handhold You, solace You, and help you ride the ups and downs without any fear.

When you have an advisor you need not worry what’s going to happen in next few days or months, your advisor will take enough actions to ride the waves appropriately. You just focus on the goals and stop looking at the returns frequently. Not all years are going to be good or bad. Everything averages out in long term and if the advisor is able to create even a 2% – 3% extra over the average, be rest assured you have a great future. Please don’t underestimate this 2% – 3% it can’t be easily created if you try it yourself.

So what made me call Budget2018 as a Silly Thing?

It’s surely not a sweeping statement. Read the article which we posted on New Year Day. (Click Here to read it). We wrote a line… ‘knowing the politics of Mr. Modi, the freebie politics is not present in the blood of Modi like others’

Whole of January we have been hearing people say that the budget may be populist. In a recent interview to a TV channel PM himself made it clear that: it’s a myth that people want freebies and he will only do what is good for the country. So what we posted seems to be on right track and on Feb.1 it may also be proved 100% right.

Hence don’t expect stupid and uneconomic decisions like waiving off 70000+ Crs just to win votes. Yes announcing schemes to benefit Rural and Agri sectors which can lift them up can’t be termed as populist. We expect many schemes, to be announced being the last budget, if you can understand the scheme of things and invest properly, that extra return over and above average will not be a day dream. In the New Year article we said: 2018 will differentiate Men from Boys and will not be an easy year.

Earlier we were feeling that the general elections may be advanced to Dec’18 with elections in Rajasthan – MP – Chattisgarh. Now we are getting convinced that they may happen as scheduled.

Be assured that the 2019 Lok Sabha polls will be the Greatest Event on Planet Earth till date, much bigger than Trump winning US elections. 2019 election is going to be by far biggest thing we will see in our life time. The politicians will go to any extent for defeating Modi. Many would stoop to any level to win. With violence erupting in Rajasthan, MP and Chattisgarh, over the movie Padmavati, all these are poll bound states, anyone with common sense can understand that the stage is already being set for 2019 election and the state elections in 2018.

So obviously there would be volatility. Days of Blindly Investing have gone. In 2018 you will need strategies, timely actions and have to target your investments well. If your advisor tells you to remain invested and blindly continue doing SIP in one fund or stock and ride the whole cycle then you don’t require him.

So, stay focused and continue investing. 2018 can be tough only for those who are not aware themselves on why they are investing.

We will continue posting timely articles which can help you to stay course of wealth creation. Follow this website by entering your email id. It can be easily done by logging on to www.VRIDHI.co.in on a desktop.

So continue investing happily and don’t hesitate to ping us or refer us to your loved ones.

Thanks

Vivek Karwa

Must Read for Techies and Doctors: https://vridhi.co.in/2016/03/26/must-read/

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