Getting it Right!

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Getting it Right!
Getting it Right!
Arindam Mukherjee - 15 May 2019

First the good news. I am pleased to inform our readers that your favourite magazine Outlook Money has been selected among the Top 10 Personal Finance Magazines in the world, in a ranking done by web aggregator Feedspot. In a list of global who’s who of personal finance, Outlook Money has got the third position behind global biggies like Money Magazine and Kiplinger’s Magazine, both from the US.

Needless to say, to be clubbed with the best in the world and being in the top three is no mean achievement and a huge endorsement of our school of thought and our approach towards journalism. Let me thank all of our readers, who have been with us through our journey. But above all, let me also assure you that we will not rest on our laurels. This will boost our morale to achieve more. We will enrich our contents further so that we can provide a much better bouquet for the ultimate beneficiary –you.

In the last couple of months, in my conversations with several stakeholders of the financial ecosystem, one thing has been pretty constant – the prospect of early general elections and how it will affect the investment climate. While several financial advisors are reassuring people to stay invested, there are a few things that we should keep in mind. Though the macro-economic indicators and corporate earnings are showing positive trends, clouds of uncertainty continue to come from rising crude prices, an unstable currency and above all, global turmoil.

At home, though retail inflation performed well last month, easing up in July over June, core inflation remains at a four-year high. And with the rupee on a down slide, current account deficit will most definitely take a hit.

It can be safely said that if Lok Sabha elections are called in early and clubbed with state assembly elections in four states, it will bring uncertainty which may not be good for the markets. Further still, if no party gets a majority, it may lead to investor panic in the fear that reforms may suffer. And a hung parliament may even lead to a major correction in the markets, which have been on the rise in the recent past in the hope that the government is determined on economic reforms. This could severely impact the Sensex and Nifty as investments will be held back. The foreign portfolio investors are already on a sell mode.

Investors are also worried about the fact that both mid-caps and small-caps have plunged. This means investors will go for safer havens with their money or just hold back investments till political stability comes back. Our cover story by M. Rajendran and Aparajita Gupta analyses the situation to gauge how early general elections could affect the investment climate.

Retirement is an emotional issue as it ends a crucial chapter in life and marks the beginning of another important phase. But today’s millennials have a different take on it. The trend is to accumulate wealth early in life and retire well before mid-career blues set in. In this issue, we look at the increasing trend of retiring around 40 to follow one’s passion and vocation. At the same time, we also look at how mid-life financial crises are forcing mid-career professionals to take a stock of their financial planning and start afresh.

Across financial companies, there is a new poster boy –Balance Advantage Funds. Emerging as a dynamic new option in equity funds, it is lower in risk and ensures safer return, something investors would look for in times like these. We take a detailed look at how these funds may become the next wave.

As the advisors say, despite the several adverse signs, there is no need to panic. Stay invested but choose  them wisely.

Money Cannot Buy Everything