Harsh Goela and CFA Aditya Goela, co-founders, Goela School of Finance, believes that the next budget will focus on revival of rural economy. They hope the government tackles inflation by considering tax cuts. Meanwhile, for the next year 2024, they advise diversifying beyond equities for a resilient portfolio into asset classes such as real estate, fixed income and precious metals.
Edited Excerpts:
What are your expectations from the next budget?
As the next budget looms, we seek focus on revival of rural economy. We hope that the government tackles inflation by considering tax cuts, both direct and indirect, putting more money in the hands of the people.
How should a portfolio be prepared for the 2024 budget?
Looking forward to the 2024 budget, consider a portfolio consistent with the government’s ongoing initiatives such as Make in India, National Logistics Policy and infrastructure development. Focusing on sectors to benefit from, such as railroads and ethanol production, could position your portfolio for potential growth in the coming fiscal year.
Will India remain an attractive destination for FIIs in 2024?
As India maintains its position as the fastest growing major economy in the financial year 2024, and with the global slowdown, FIIs have no better choice than to invest here. India remains a compelling destination for foreign investment.
What financial planning should be done at the beginning of the year?
Start 2024 with financial prudence – prioritize life insurance, secure health coverage and build an emergency fund with liquid options. Embrace strategic stock market investments for potential growth. Follow the 40% EMI rule to manage loans wisely.
Besides stocks, what other asset classes should investors be accumulating in 2024?
In 2024, diversify beyond stocks for a resilient portfolio. Consider allocating to promising asset classes such as real estate, fixed income and precious metals. A well-balanced mix can improve stability and capitalize on various marketing opportunities.
Which sector should you stay away from next year?
In the coming year, watch out for loss-making new-age stocks, the oil and gas sector due to the strong focus on renewable energy, and companies heavily dependent on exports due to the global slowdown. Explore more resilient and sustainable investment options for a balanced portfolio.
What lessons have you learned from 2023?
To build lasting wealth through your investments. Pay more attention to your entire portfolio than each stock. Regularly evaluate your overall portfolio’s PE (price-to-earnings ratio) and compare it to other indexes with the same risk. This helps to see if your portfolio has stocks at a reasonable price.
What is your Nifty FY24 target?
Predicting Nifty 50 levels is a futile activity, it is like catching the wind. But if you have to ask, I would say we can see Nifty around 22000 – 23000 points by the end of the current financial year if options match exit polls.
Will the medium and small capsules remain attractive next year as well?
As we approach next year, the performance shown by small and midcaps is remarkable, with index returns ranging from 35% to 40% over the last seven to eight months. While valuations appear elevated, there are compelling stock-specific opportunities in this space.
One tip for new investors?
For new investors, a crucial piece of advice is to prioritize education before execution. Take the time to understand the basics of investing, gauge risk tolerance and diversify wisely. Patience is key; let your investments grow over time rather than looking for quick gains. In the dynamic world of finance, knowledge is your greatest asset.
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Published: 19 Dec 2023, 12:42 IST