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The investment roadmap: Why stability matters

Nothing pleases an investor more than a sense of stability, a feeling that he can put his money into assets where things won't suddenly change

Sourav Majumdar
Published: Jan 23, 2015 07:07:11 AM IST
Updated: Jan 21, 2015 05:13:09 PM IST

Last year, when we published our annual Investment Guide, uncertainty and volatility were the key themes. No one was willing to hazard a guess about how the year would unfold, and geopolitical and economic uncertainties loomed large. Now, as we bring you the 2015 Investment Guide, things have changed quite dramatically. India has a stable political formation at the Centre, there is an overriding sense of optimism in the business community, and the markets have been buoyant despite occasional blips in between. Nothing pleases an investor more than a sense of stability, a feeling that he can put his money into assets where things won’t suddenly change or head in a direction opposite to the position he has taken.

The investment roadmap: Why stability matters
The experts, whose views you will find in this issue, have shared their opinions on various asset classes against this backdrop, in which the government is keen to roll out the next phase of important reforms, with oil prices declining sharply (something which most believe will augur well for India) and inflation finally showing signs of coming under control. In fact, even as I write this note, the Reserve Bank of India (RBI) has announced a 25-basis-point cut in the repo rate, signalling the beginning of an easier interest rate regime. This has, expectedly, also pleased the markets and the 30-share S&P BSE Sensex is up smartly as a result. The overall optimism since the new government has taken charge is also manifested in the fact that the Sensex has risen 13.7 percent between May 16, 2014, the day the general election results were announced, and January 13, 2015. Significantly, during the same period, Brent crude has declined from $109.75 per barrel to $45.65 a barrel, a 58.4 percent fall, making life a lot easier for the government. The stage seems set for investors to have a good year, but as our Markets and Finance Editor Pravin Palande, who helmed this special issue, puts it, we are still a fair distance away from euphoria.

While on the subject of investing, this issue also introduces you to a lineup of India’s most successful and prolific angel investors who are powering the country’s fast-growing entrepreneurship ecosystem by funding startups with great ideas and passionate teams. You will meet them on page 80. These are the people who have been able to spot ideas early and have had the courage and conviction to back them, creating excellent businesses in many cases. India, as most of us will agree, needs many more like them.

Best,
Sourav Majumdar
Editor, Forbes India
Email:sourav.majumdar@network18publishing.com
Twitter id:@TheSouravM   


(This story appears in the 06 February, 2015 issue of Forbes India. To visit our Archives, click here.)

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