Three Reasons For Long-Term Investors To Be Bullish On The India Growth Story

Three big positive news hit the screens in less than three weeks. The latest is the stunning GDP growth numbers. The Indian economy clocked 7.8% growth in the fourth quarter, surpassing all estimates. The other two were the S&P upgrading India’s outlook to 'positive' and the RBI transferring a record dividend of Rs 2 lakh crore to the government, 140% more than the previous year.

All three are remarkable and material for the long-term story of India. Each will play out over time and a combined effect will lead to a rating upgrade for India.

This is what long-term investors should look for while building their portfolios. I had pointed this out on our show, Editor’s Cut, on NDTV Profit a couple of days ago.

What I am stating might sound obvious to many. But the point is building a portfolio with conviction and not getting swayed by the market volatility matters.

Volatility should be of concern to traders, not investors. In the current scenario, markets are playing the political card—election outcome—and ignoring the strong fundamentals of the economy and the story unfolding over the next few years.

Policy and reforms continue, irrespective of the political developments, though there may be delays and realignments. But the core story is growth.

So, every fall is an opportunity for the investor who has long-term goals. Be it, in the form of mutual funds or direct equity investments or a combination of both.

The biggest risk for investors is not investing and making the mistake of investing when the markets are gripped by euphoria.

The last few sessions have seen a steady fall in the indices and a number of stocks are cheaper by 3-8%. Overall, the key indices are down by about 2-3% from the peak of 23,000.

Traders will play the exit poll card on June 3 and, once again, go all out on June 4 when the actual results come out. So, if you had not invested this week, it may seem that you may have missed an opportunity.

Not really! Investment and portfolio-building is a continuous, slow and steady process. Keep your eyes on the screen, focus on your favourite picks and keep adding with conviction. Average and accumulate and let your investments multiply!

Muralidhar Swaminathan is the Managing Editor at NDTV Profit.