The financial world has seen several transformation in the recent past. With the Great Recession still lingering in the minds of investors, today seems to be as dangerous as it was in 2009 – the year of the recession began. Historically, the best times to invest has been the recession period because that’s when the best returns are possible as when the economy swings back to action. Unfortunately, when there is a recession, no one knows for how long would the recession last and hence, and it is always best to stay away from recessionary markets until a sign of recovery is cleared noticed.
In India, one of the best thing that happened to the Financial Investment world is RIA . SEBI, the Security Exchange Board of India, has now mandated that only an RIA can provide financial planning services. This includes recommendation to buy and sell equity and advise on all aspects of financial planning and investment.
What all this means is that the Indian equity cycle and overall economy is looking for an upswing and that advice can be now sought through fee seeking professionals and not just someone selling a product for mere commission. Seeking an RIA advice is akin to seeking medical advice from a qualified doctor. The regulations are strict and hence not every tom, dick and harry can become an RIA.
So is it the best time? Yes, a best time comes when rules are regulations are on your side, and the market shows signs of revival. Well, anytime is the best time. When equity markets were on a down slide, if someone had continued the SIPs in a diversified mutual fund, the returns would be as high as 30% annualized returns over the last 3 years. Finvestor.co.in, the blog site of Finvestor.in, will feature several articles in the coming days that will focus on the best time and how to invest in the right places at the right time.
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Bhoi Smrutirekha Dharanidhar