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This Deepavali Invite Prosperity by investing in High quality Equities

Deepavali

Deepavali, the time when people come together to celebrate Happiness and Prosperity with their Loved ones, is once again around the corner.  It’s time again to lay prayers to Goddess Laxmi for her blessings of goodwill, prosperity, and growth on us. The Hindu New Year that follows after Deepavali is the perfect time when you can plan for new investments across multiple avenues to multiply your monetary wealth fast for the upcoming future.   

Every Diwali, people invest in gold, real estate, commodities, bonds, etc., with their set investment strategies in the hope that their money will generate lucrative returns in the future. But the Downside is, they don’t do much analysis and research.

Little do they put in the effort to explore and implement other investment avenues by adopting an “out-of-the-box” mindset. Yet, many hope for prosperity and growth in their monetary wealth without realizing that they are missing a key ingredient from the equation. 

Global Tensions

Be it rising bank interest rates across the globe, the consistent upward trajectory of inflation, the fear of recession in the news in 2023, or the rise of stagflation across the UK and the rest of the world, these global tensions are building up fear amongst retail investors across the globe.

As a result, the Indian equity market is also seeing its effects in one way or the other.

Let’s see how.

Rising Bank Interest Rates in India Following the US Fed Hike

The RBI has increased the repo rates from 4 since May 2022 to 5.90 percent till the end of September 2022. This marks the 4th straight hike by RBI this year that has increased the Loan EMIs significantly.

People in India are flushing out a major chunk of their monthly income as a large amount of EMIs which is burning a hole in their pockets.

Although it also marks the increase in FD rates, that is nowhere close to the inflation of 7.4+ percent in India. A loss for a retail investor like you.

This is followed by the US fed hike rate in September. It is also feared that a 75 BPS hike is again expected in upcoming months (probably November and December) by the US fed.

Ratio Analysis

US Fed Rate Hike Graph Nov 2021 to September 2022

Ratio Analysis

Interest Rate Hike by Reserve Bank of India from October 2021 to October 2022

Higher Ongoing Retail Inflation & Its Fear of not getting back to Normal Anytime Soon

Let’s see the below graph, and pause for a second to absorb the fact that how rapidly the Indian Retail inflation has shot up in the last year.

 

Ratio Analysis

From 4.48% in October 2021 to 7.41% by end of September 2022, that’s a whopping 65+ percent increase in Indian retail inflation.

Imagine how quickly your money sitting in the bank account has depreciated over the last year. Surely not a suitable avenue for investment given the above situation.

Probable forecast for the next couple of months regarding the Indian Retail Inflation –

  • According to RBI, India’s retail inflation is to come down, but many analysts also predict that it will still be above the 6% mark.
  • It’s highly unlikely that retail inflation in India will go even close to the 4% mark in 2023. That is as far from the sight destination as of now. It could easily take more than 1 to 2 years for that.

Fear of Recession in 2023.

With the constantly hiking of interest rates by global central banks including that of India, fears of a global recession in 2023 are becoming highly eminent.

Covid-19 has done some long-lasting damage to the Indian and global economies. Followed by the Russia-Ukraine war which has seriously disrupted global supply chains, economies around the globe are going for a toss, and the fear of an upcoming recession is visible.

How soon or late is hard to tell at this stage but it’s for certain according to the world bank and central banks around the globe. And India is no exception to that.

Even if we project to grow at a fairly modest rate, Indian faces the challenge of recession in 2023.

So, What Should You Do?

Just as the festival of Deepavali signify the positive over negative, and ignorance over knowledge, similarly, it’s time for you to get out of the box and implement a new course of action in your investment Strategies.

The Solution to Preserving Wealth & Maximizing Returns in these tough situations is to – Begin Investing in High-Quality Equities This Diwali & Accelerate the Journey to Your Upcoming Financial Goals.

On this Auspicious and Prosperous moment of Deepavali, it’s time to begin your journey of high-quality equity investment which has significant potential to give you lucrative returns never imagined before (backed by analysis and deep research by industry experts).

Quality Investing is the only avenue that has proven to beat inflation, recession, and the impact of rising bank interest rates on the Indian Stock Markets over the past decades.

Not only that, any major ups and downs that have hindered the normal growth of Indian and global economies in the past couple of years, haven’t been able to affect the long-term performance of quality stocks.

Here are a couple of Characteristics of Quality Stocks that make them immune to short-term market fluctuations and roadblocks in the economy –

  • They have strong leadership at their core and dominate their share of the market.
  • Their Return on Capital Expenditure (ROCE) is higher followed by a higher profit margin consistently over a larger period. This is a clear-cut result of having an edge over the competitors.
  • They control the pricing power. That means even when the company hikes the cost of its product or services, you do not see a huge drop in volumes.
  • They have generated consistent profits over a longer period.
  • Their earnings are relatively stable and predictable.
  • Product/service innovation takes the centre stage for any quality company.
  • Last but not least, they enjoy exceptional brand loyalty.

In short,

To protect your wealth from Inflation, recession, rising bank interest rates, and any unpredictable ups and downs in the economy, investing in Quality stocks is the smartest move you can make.

Quality investing is a highly successful investment strategy and roadmap that has proved to generate a consistent, stable, and a higher rate of return in the long-term surpassing all ups and downs of the market be it due to whatsoever reason.

It’s time not just to protect your wealth but to grow it at a significant rate of return via smart and research-backed measures. So, start your quality Investing Journey now with one of the best available portfolios in the market.  


Introducing Elite Equity Portfolio – Best Investment Avenue This Deepavali.

Presenting to you our Elite Equity Portfolio which is the best investment avenue in the current market situation. We lay the ground for you to invest in quality stocks so that you can achieve higher stable long-term returns.

Our Portfolio has proven to beat inflation and recession for many years in the past with a proven record of generating a 25% + rate of returns on average consistently.

Investing in quality stocks is the only fool-proof way to generate long-term consistent returns this Deepavali. Through our Elite Equity Portfolio, we make investing in direct equities a piece of cake for retail investors.

We only invest in the stock pool of the Nifty 500 Index. The primary reason being it gives plenty of opportunities to find quality stocks across different sectors and industries.

The Portfolio functions on the principle of sensible investing in quality companies that have strong fundamentals, well-curated business models, and fit into all the key characteristics mentioned previously. 

We do extensive qualitative research, background checks, and implement a tough screening process to filter out the best-quality stocks.


So, To Wrap Things Up,

Invest in Elite Equity Portfolio this Diwali and open your doors for prosperity and success in your stock investment journey.

Our investment strategy has proven to beat Flexi-Cap mutual funds and Direct investment in the Nifty Index with a considerably higher rate of returns from the last few decades. It has proved its worth in all the good and bad times for conservative retail investors like you.

Reduce Risk and Maximize Returns – Motto of Elite Equity Portfolio.

So, start your quality investing journey today!

Wish you a Happy Deepavali!

About Author

Picture of Vinayak Savanur

Vinayak Savanur

Founder & CIO at Sukhanidhi Investment Advisors, a SEBI registered equity investment advisory firm. He has nearly a decade of experience in the stock markets and has been a holistic financial planner.

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