How should a youngster invest? : Part 2

Best time to begin investing money is right when you start to earn. As Sachin Karpe informed you about three main steps to saving money, now lets us have a look at each one of them one by one.

 Plan to be secure: It is your onus to secure your life, advises Sachin karpe. This can be done by buying a term life insurance policy, so you are buffered of any life-risking danger. Save enough money, at least 3 months’ contingency fund for any kind of emergency. This will help you feel confident about the next step. Once the securing pat is done, it is time to gear up for comfortable planning which Sachin Karpe will continue in the next post.

Stocks reach to F&O contract expiry

Observing the markets today, Sachin Karpe explains that riding on the final day of September F&O contract’s expiry, equity markets had a flat start. Domestic institutional investors went heavy on profit booking today even when FIIs were in the mood to buy.

Since we are in a threshold of earnings season, which has turned out to be the weakest in many quarters, the effect will show on the market which will again go volatile. Therefore, it is possibly the right time to move out of tactical and positional calls before the start of a new F&O Contract, feels Sachin Karpe.

The general positive mood in markets kept the rupee at positive but it continues to show signs of slipping down by month end. Sachn Karpe warns saying, Global cues too continue to be critical for the RUPEE’s stability and add to the inherent uncertainty in the forex market.

What motivates the youth of today

India is witnessing a dynamic time, feels Sachin Karpe. With the mean age of India being 24, the dynamism increases manifold, as we are evolving as an economy, civilization and culture. Since the young minds are going to be the driving force, it is important to impart direction and guidance to them, comments Sachin Karpe.

It begins with knowledge and wisdom. Unless you have read enough, you can’t have your minds open. Books are gateway and a peek to peoples’ lives that have set an example by doing something exemplarily, asserts Sachin Karpe. Some autobiographies like Steve Jobs, Lance Armstrong, Richard Branson can be a good source of inspiration, especially as these people thrived on the success, mostly brought to them by youngsters, tells Sachin Karpe.

After the cheer, RBI blows it up for the stock market

Markets continue to react negatively to the tough stance taken by the RBI after it blew the bugle on its war against inflation in Friday’s credit policy announcement, observed Sachin Karpe. While the hike in REPO may not be as unfavourable as the markets may make it look at this point in time, the reaction in the market being witnessed currently, is also a fallout of the impending expiry of the Sep series in F&O Contracts, feels Sachin Karpe.

Banks, particularly the bigger ones (PNB, SBI, BoB, AXIS, HDFC) continue to see lack of interest from investors while the Pharma and FMCG space, despite fears of high-valuations continues to draw favour. Sachin Karpe also observed that some of the Power sector stocks too are witnessing mild accumulation by traders in anticipation of some favourable announcements from New Delhi.

Rural banking, a step towards a comprehensive growth

Agriculture still forms the crux of Indian economy, but it lacks the impetus that will help some profound growth in the sector. Sachin Karpe is of an opinion that t his can only happen when Indian private banks think seriously about financial inclusion of the rural population. This financial inclusion has the potential to fill a gap caused by ever soaring provisions which have hurt the financial statements of banks.

Banks have largely been resistant to the idea of launching rural branches due to reasons like high operational and maintain costs, tells Sachin Karpe. But, what they will sow now will reap them huge benefits in future. With some effort in educating the rural population, they can gain long term loyalty, increase their spending power leading to consumerism thus contributing well to the Indian economy. Sachin Karpe says, with right policies and plans, financial inclusion can do wonders in favour of Indian banks, if its far sighted benefits can be seen.