Indian economy on smooth and steady growth path

The year 2014 marked a new dawn for India. After many years of coalition governments, the Indian voters elected a BJP government with absolute majority under the leadership of Prime Minister Mr. Narendra Modi. Along with a stable government at the centre, in the year 2015 a number of macro-economic factors turned favourable for India’s economic growth. Some of these include:

1. Government initiating a number of economic initiatives like Make in India, Digital India etc. and reforms like increase in insurance FDI, GST, Land Acquisition Law etc.
2. Prices of commodities like crude, copper, gold etc. falling to multi year lows
3. The current account deficit and fiscal deficit falling within manageable levels and a stable currency
4. Inflation cooling off and RBI cutting interest rates, followed by banks passing on the benefit of low interest rates to corporates and individual borrowers

All the above economic factors put together, put India’s economic growth on a firm trajectory. With the growth in GDP; the financial performance of companies started improving and the stock markets hit all-time highs. So where and how do retail investors like you and I invest to benefit from the India growth story. FundsIndia’s investment platform precisely gives us investors the opportunity to invest in various financial products and benefit from India’s growth story.

FundsIndia investment platform

FundsIndia.com is India’s leading online investment platform that caters to retail investors by providing access to a range of financial products like mutual funds, equity shares, corporate fixed deposits and bonds, insurance etc.

FundsIndia’s New India Portfolio

FundsIndia’s research team has come up with the New India Portfolio to specifically participate and benefit from the India growth story. Based on their core of fund picking philosophy of consistency and returns, the research team has analysed and evaluated 100 of mutual fund schemes and come up with a portfolio comprising of four mutual fund schemes that will generate long-term wealth for investors. The portfolio comprises of:

1. Diversified equity fund: This fund invests majority of its corpus into large blue chip companies and thus lends stability to the overall portfolio. The large cap companies chosen by the fund have a track record of outperforming the market during good times and during bad times the fall in the share prices of these companies is much lower than that of other companies.
2. Mid cap equity fund: This fund invests in quality mid-sized companies that have good potential for growth and outperforming the broader market and thus generate superior returns for the overall portfolio. The companies chosen by the fund have the potential to deliver sustainable profitable growth in future and thus hold the potential of becoming tomorrow’s large caps or blue chips. The inclusion of these high growth companies can add a kicker to the overall returns of the portfolio.
3. Diversified theme equity fund: This fund invests in companies that have good potential for growth in multi-themes (infrastructure development, resources, finance, social development and agriculture) and cyclical sectors such as manufacturing, banking, infrastructure etc. The current soft interest rate regime is expected to fuel the consumption theme, leading to higher demand. Low interest rates and soft commodity prices will also benefit companies engaged in producing goods in the consumption theme. This fund identifies such themes and invests in them thereby benefiting its investors.
4. Long term debt fund: This fund invests in various debt instruments like Government securities and corporate securities. The fund is also expected to benefit from the falling interest rate scenario. Interest rates and bond prices have an inverse relationship resulting in bond prices going up with interest rates currently going down, thus generating superior returns for the fund. The fund also provides meaningful asset allocation along with stability to the overall portfolio.

The four funds have been chosen in a manner that can add strength, stability and diversification to the portfolio along with generating superior returns for the portfolio. The funds have been consistent in their performance in the last 5 years and the portfolio would have generated returns of 18% CAGR as compared to 11% returns from the blended index. Above all the portfolio ensures that you as an investor participate in the India growth story and generate long-term wealth.

Should you invest?

If you want to benefit from the India growth story and are looking to build a diversified investment portfolio that has a mix of a large cap fund, small cap fund, debt fund etc. then the New India Portfolio is just for you. The portfolio has the potential to deliver superior returns in the long run. If your investment time horizon is greater than 5 years then you may consider investing in the New India Portfolio. Investors are advised to get the portfolio reviewed every 6 months from their advisors. You may open an account by clicking here.

About FundsIndia

Apart from providing access to various financial products, FundsIndia also provides unique value-added services like flexible Systematic Investment Plans (SIPs), Value-averaging Investment Plans (VIPs), smart solutions, ready-to-go portfolios, expert investment advice, and more that help investors get more out of their investments. The company’s vision is to enable every Indian investor to have a well-planned financial future and its mission is to empower and enrich Indians. The investment platform was launched in 2009 and has garnered lakhs of investors since then. The company has won several awards for its continued excellence in financial services and has also won many accolades to its credit.

Disclaimer: Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs.