Sometimes I receive this type of question, I want to withdraw my mutual fund investment or stop my SIP. I try to know the exact reason from an investor, then got the reply from an investor as below -
The market can fall.
Business is at a lower level.
Unemployment is very high.
I try to answer these questions with some data. I have already written a blog that GST collection is all-time high and increasing at a better rate. It is the root of all development activity of the economy.
The plane, train, hotel, theatre and so on are not available easily and we are sowing we don't have money. It shows our economy and its earning is not in crisis.
Since we deal with mutual fund investment so start with it first -
- Mutual fund investment was 8.26 Lakh Cr in the year 2013 and now 41.62 Lakh Cr in 2023
- RBI CPI Inflation was 10% in the year 2013 and now 4.7% in 2023
- Electrified Railways was 4100 km in the year 2014 and now 28100 km in 2023
- Corporate tax was 33.90% in the year 2013 and now 22% in 2023
- Foreign Direct Investment ( FDI) was $22B in the year 2013 and now $46B in 2023
- GST collection was 7.19 Lakh Cr in the year 2018 and now 18 Lakh Cr in 2023
- Corporate debt as % of GDP was 62% in the year 2015 and now 50% in 2023
- Real Estate projects were 50000 in the year 2015 and 75000 in 2023
- Digital Transactions as % of GDP was 4.4% in the year 2013 and now 76.1% in 2023
- The highway was 25700 km in the year 2014 and now 53700 km in 2023
- Direct Benefit Transfer was 7368 Cr in the year 2013 and now 2.63 Lakh Cr in 2023
Source: Respective government websites
I wanted to make the point that you are aware of your financial goal with the support of a professional. Please go ahead nothing to worry about economic growth.
Equity investment can beat all other asset classes in the long term with a higher margin.
If the above business activity is going on then obviously
Indian economy is in strong condition
Business is in good condition and
Employment is again in better condition
In conclusion, the Indian economy is in better condition and fifth largest economy in the world.
Written By :
Ajay Tiwari (PFP, IRDAI, AMFI)
Founder of A T Financial Services