FROM THE DESK OF A CHAIRMAN
August 07, 2019.
Re: 1) Our Programme on `Creation of Wealth’ 2) Current Economic and Market Situation 3) Investing in New Economy
We have been organizing our signature programme on `Creation of Wealth’ every year. 10th annual programme was scheduled on this Sunday, the 11th August 2019 at Platinum Jubilee Hall SIECC, Sarsana, SURAT. This programme has been postponed for multiple reasons and re-scheduled on Sunday, the 22nd September 2019 at the same time and venue. Kindly take due note. You can look forward to very good information and presentations on `Preservation of Wealth’.
If we visit show-room, there are no customers. If you meet businessman, he would invariably tell that there is no business. There are incomplete projects, factories are flooded with inventory. Liquidity has dried up in the system. Everyone is worried.
To me, it is result of cumulative actions of demonetization, GST, RERA etc. I believe that there should be some momentum and demand of all goods and vehicles before Diwali. This extreme lack of demand situation looks temporary and wheels of business should be moving again.
Is this a time for Government to do something? Yes, government should take measures to stimulate growth. Government needs to make some structural changes in economy and boost jobs, create demand and push the wheels moving.
At global level, there is slow down. It is on account of trade wars, tariffs war and excessive supply of all the goods and services. So momentum may not be as big as past. Our GDP growth rate should be lower by couple of points in next few years.
Stock Market is also showing down trend post budget on account of expectation not met plus withdrawal money by Foreign Investors. Market will revive but may take time. So my suggestion is to hold on with the good equity investments in stocks/mutual fund. There is no need for panic. No need to sell. If you have money, please invest in phased manner, over next 5-6 months. Returns on equities in future should be little lower than earlier years. Considering lower inflation and lower rate of interest, this may not be bad in real terms.
India is US $ 2.7 trillion economy. It is going to be US $ 5 trillion economy in next few years. Where will new US $ 2.30 trillion come from? This new GDP of US $ 2.3 trillion will mainly come from New Economy. Investing in this New Economy can be an interesting proposition. For example, investment in start ups. In a recent TIE event, few start ups were showcased as opportunities for investment. There are high risk, high gain investments. We need to understand them and evaluate. We can make such investments in startups via AIF (Alternate Investment Fund) route also.
Our role is to bring such opportunities in forefront. We are playing this role well. We have formed a new group under `Connect CONCEPT’. We are bringing good investment opportunities to your notice through this networking.
Please connect with us for all types of investment opportunities. Happy investing through CONCEPT.
[ Chairman ]