With the markets reaching a all-time high and volatility in the markets seen as never before, one wonders, if there is any avenue left for investment. The bigger questions are if one should stay invested, or exit or take fresh positions. I would say, while the valuations may look expensive, the (India) Infrastructure story is yet to unfold. The current government with its 3 wise men -Dr Manmohan Singh, Mr Chidambaram and Mr Montek Singh Ahluwalia, has big plans for India. This includes mega plans for roads, rail and airports which will facilitate the next boom. The team has proven credentials for implementing reforms. So the sectors to watch out are Cement, Steel, Aluminium and Construction. Besides the Auto Industry looks promising for the next couple of years. I would vouch for these industries as growth stories for near and long term.
RE:where I shoul invest?
by Abhijit Biswas on May 18, 2006 11:16 PM Permalink
Harish ji for you the best thing would be to put those 8000 in a mutual fund's growth scheme. Look for the best performing growth funds and park your funds there. When you have more money to invest, then you should diversify across different schemes like growth/income/cash funds, etc
Mutual funds are the best bet even today at 11500 levels. To a person who has seen 5000 and 6000 levels of Sensex with awe, 11500 might seem to be a "peak". But in view of economists, the "Great India Story" has just begun and Sensex is going to rise again after such "corrections" (read 200 and 300 point falls). MF's with lesser risks are a better bet even though equity is better for higher returns still for those with voracious appetite for risks.
