The Indian investor has evolved over the last few years and so has the role of financial advisory services in India.
Today there are a wide variety of investment options available to investors such as direct equity investment, mutual fund investment, National Pension System (NPS), Public Provident Fund (PPF), bank fixed deposit (FD), post office fixed deposit, company fixed deposit, non-convertible debentures, Senior Citizens' Saving Scheme (SCSS), RBI taxable bonds, real estate and gold.
Among all the above-mentioned investment options, the best investment option recommended by financial advisory services in India is equity investment. Property prices have become stagnant over the last 4 to 5 years making it a dead investment. The huge number of unsold properties across major cities in the country reveals that property is no longer a preferred choice of investment for the new age investor.
Bank and post office deposits to have lost their sheen over the last 4 to 5 years due to falling interest rates making them highly unattractive. Gold which was once considered the ultimate investment option has given very average returns over the last 10 years. Besides this, investors are now realizing the problems associated with investing in gold such as the need to pay rent for lockers to secure it. This increases the cost of investing in gold.
Here are a few reasons why financial advisory services in India are upbeat on equity investments:
Equity has given the best returns till date among all other asset classes in India. Equity has the power to beat inflation, unlike traditional investments which offer low returns. For example, if you invest in a bank fixed deposit which offers 7% interest per annum and the rate of inflation is 4%, the real rate of return would be a mere 3% (7%-4%).
India is racing towards becoming a USD 5 trillion economy over the next 5 years. This opens up a huge opportunity for many businesses in India which can contribute towards this economic growth. And the best part is that stocks of many such businesses are available at good valuation prices. For a better understanding let’s take the example of the infrastructure sector in India. In the 2019 budget, government has allocated 100 lakh crores to the infrastructure sector in India over the next 5 years to develop roads, railways, bridges, airports, ports, power etc. in the country. This will directly benefit many infrastructure companies which will bag these large scale infrastructure projects.
Online Financial Advisory Services In India Empowering The New Age Investor
With the availability of cheap and high-speed internet and smartphone access, more and more Indians are now using technology to invest inequities. This has also led to the rise of online financial advisory services in India which offers sheer convenience to investors. Now an investor can simply view all buy and sell recommendations given by the online financial advisory services on a mobile app as well as track his portfolio anytime, anywhere instantly.