A New Beginning For Mutual Funds, Stock and Bond Markets

The long wait is over, India has elected its 17th Lok Sabha Members by giving Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) a powerful mandate in the recently concluded general elections.

Prime Minister Narendra Modi and his cabinet were sworn in on Thursday. The return of Modi has given hopes of the economic issues being handled prudently. Modi government 2.0 is the first ever government in the World that has returned to power after introducing Goods and Services Tax (GST) in their previous stint.

Modi, with 5 more years at the helm of things, and has enough time to change the fundamentals of India and this has made the Indian stock markets more exciting than ever before.

Global issues might not seem to cause problems shortly, but they can cause underlying problems if ignored. Major global challenges are a slowdown in the Chinese economy, US-China trade tensions and rise in the crude oil prices.

As far as corporate India is concerned, growth will continue to be a challenge until the monsoon arrives. Monsoon affects indicators of the mixed-macro economy. NBFCs are badly hit due to liquidity crunch and government must make suitable changes in the monetary policy to address this.

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With a stable government at the centre, investors can now invest with a long term horizon. Stock markets play better when the government is free of political turmoils.

Indian markets have generally played better when there is a new government with enthusiastic policymakers and appetite for higher corporate risk. India must work on enhancing skills and lowering capital cost.

Prime Minister Modi’s ambition of doubling farmers’ income has the potential of eradicating poverty from India. Domestic and foreign investments are expected to sore, and this promises to boost India’s growth rate and the stock market.

Investors can consider increasing their equity exposure in planned steps. You can invest in SIPs if you are worried about the negative global news.

With the new government set to address the economic issues, it is sure to boost the Indian stock market and mutual funds. Investors are certain to make the most of this opportunity by investing strategically.