Are Companies managing their human resources well ?

Are Companies managing their human resources well ?

Most companies run after all sorts of resources – capital , infrastructure , technology, products etc but are they giving importance to the scarcest of resources i.e employees ?    Now a days most businesses have outsourced their thinking to client . Simply put look the needs and demands of clients . Ideas of new product or service now mostly taken from inputs from clients . It is now a days believed by most of the companies that to be competitive the companies have to move from product centric to customer centric . Yes true till its working fine . What if the customer suddenly losses interest in the particular product or company ? Also since now everyone is looking at the same customer to provide some new idea then where is the difference creation .

Companies apart from taking inputs from customer should also create and nurture difference creator amongst employees . More than the stake of customer it is the stake of employees associated with the growth of the company . The more percentage of employee are there as difference creator the more competitive advantage the company has . How many companies in India really support ,nurture and reward difference creator . Every one consider a productive employee who meets the target , adds revenue to the balance sheet or works in synergy with his senior as best employees .

One has to understand that products have life cycle and also customers loyalty can not be taken as everlasting things . One parameter where the growth of employees in their career should also be how much difference creator they are . Difference creator means being innovative , thoughtful, creating impact , bringing change for good etc. Do companies have an effective mechanism of checking human skill , talents and competence or it is just the based on the feedback from seniors ? Training is one of the most less emphasised by many companies . Yes some have their calendar or training units but again its focussed more on product knowledge , soft skills , sales oriented etc . Have we seen any training of emphasising on creation and nurturing of  difference creators amongst employees .

The organisation should develop a culture , system , atmosphere where employees are motivated to be difference creator . There has been so many countries which are much smaller in population than India but we find them technogicaly advanced , producing better products and we just try to ape them or bring them to India.  Are Indians less intelligent than any other nationality in the world ? Why a nation of 130 crore can be a pioneer in industries , product etc . Reason is very simple there is hardly any culture , atmosphere or incentive for being a difference creator . The more as a company , as a Industry , as a nation we start recognising such individuals who want to create difference i.e rather than banking on the thought and demand process of client they are putting their brain ,mind, soul , heart ,knowledge , skills and thinking of bringing something new India will be also producing lots of new products and goods .

If we are the most populous nation then we should also think of leading the world w.r.t innovation in product , process etc . The Indian Engineers , Doctors , Scientist have prospered in USA but why not in India ? Time has now come that every company now look to groom and motivate such difference creator and who knows next coming decades can be all of India .  

Emotional Intelligence in Investment Advisory

Emotional Intelligence in Investment Advisory

Emotional Intelligence is to know your own emotions as well as those of others, self motivate and know how to monitor the emotions of others.

In India emotion plays a very important role in the life of most of the people and in their decision making. Investment products or financial products are not tangible where look, feel and touch can impact ones decision making. It is the belief, experience, faith and trust which influences the decision more. Ideally it should be the knowledge and logic that should be the core of investment decision making but that is not the case.

Do we treat our client as a revenue generator for our company or someone whose existence itself is must for my own better career and life? If we think client as a revenue generator then our approach is totally product centric, our own company centric and we try our best to convince him and get the business. But in this process have we for once really tried to understand what client really needs or wants? Every investment product is good but not suitable for all. Most investment product sellers are so much impressed with the feature of the product that they anyhow make it suitable for anyone.

If any investment advisor thinks that this client is useful for my own career, he will not do hard selling but soft selling. I will think him not as a mere revenue generator but a very much part of my team. He is no more an outsider for me but a very much part of my own success and growth. Here emotional intelligence plays a very active role.

We need to understand the components of emotional intelligence

Personal Competence – self awareness and self management

Social Competence – Social Awareness and Relationship Management.

Self Awareness is the ability to understand your own mood, emotions, drives and their impact on others.

Self Management – to control disruptive or impulsive moods and to think before acting

Social Awareness –ability to understand emotional characteristics of others and having skills to treat people according to their emotional reactions- empathy)

Relationship Management – proficiency in managing relationship and building network. The ability to find common ground and building rapport.

In investment advisory when we are interacting with client we should be cheerful, cool, calm and composed first. Pressure of meeting sales targets or revenue playing on your mind, your emotion may not be in your control and wrong communication can come out ending up in no business or miss-selling. Even if I am not in total control of my own emotions still I should not hasten with my recommendation and force decision on my client if it has some element of biasness. I am expected to be fair to my client. I should know what makes my client happy. Is it excess return or it is safe consistent return? Is he comfortable taking risk i.e. able to bear short term volatility or that short term volatility affects him psychologically?  If short term volatility affects him then have I explained him why it happens and how it benefits also if there is patience and long term investment horizon. Have you ever once explained him all possible risks in detail and how you can help to manage the risk or you have just marketed on the basis of return. In India the fear of losing looms so much in the mind of investors that they lose opportunity of good gain also. As an investment advisor also many refrain to explain risk for the fear of losing the client as it creates negative emotion. A right advice with total benefit for client develops a very solid everlasting lifelong relationship and also a network of such long trusted relationships which will eventually lead to client faith in advice and ultimately help an investment advisor meet his business targets, earn profitability for client (first) then company and finally earn reward for him. We all know client acquisition is very difficult but if client is retained following emotional intelligence way then business growth is always exponential.

Panch Tatva of Human life and Relationship

Panch Tatva of Human life and Relationship

We are made of pancha tatva – prithvi, aakash , vayu , agni and jal (earth , sky , air, fire and water ).  Apart from what God has created (nature, sun, moon, stars, river, mountains etc) whatever human beings have created for which they feel very proud of is all from this panch tatva . You can not imagine a single thing made by mankind which is not from this panch tatva. So one can easily say even the inventions and creation by human beings have happened because nature / God wanted so. Nothing exists on this earth without the approval of Almighty .

I have tried to visualise the panch tatva even in our personal life, in our relationship. For any human being 5 relationships are most important. We get the birth from the womb of mother. We lay in her laps when small kid. Mother is equivalent to earth. Earth only gives you but takes nothing in return. Agriculture products helps us survive , tall buildings where we live and work have their base on earth only , cars , roads on which we move from one place to another in on earth only . Role of our mother is same in our life: makes food for us, gives us with full love and affection.  When we are in any discomfort or pain we put our head in her lap.

Second tatva is aakash ( sky ) . Aakash covers us, how long and how high it exists cannot be  measured . We feel protected in the lap of earth under sky. Aakash in our life is our father. In our life father is one to whom we seek protection if we feel insecure from outside. He is always there to protect from any external risk. In the same sky we find hot sun in day and also cool moon at night. our father corrects us by being tough  when we are wrong but will show mildness when seek forgiveness. Father always represents two extreme  behaviour but both beneficial for us , same as sun and moon in sky .

Third important tatva is Vayu . From the time we are born till death we breath. Vayu is must for our health. A partner throughout our life . Who is our partner throughout life in all situation. It is wife  . She is called ardhangini or better half . She is a constant companion in every stage and situation of life same as vayu . You change a place, do anything but vayu is always your silent companion always to make you alive . Similar is wife . If there is breathlessness or air pollution how uneasy we feel. Similarly a right wife like right vayu makes you feel healthy. Vayu is not polluted on its own, our mistake has made it polluted . Similarly we should not find fault in wife but find whether  we have taken her care properly for a proper relationship to exist .

Fourth important tatva is Agni. Agni is energy in our life. It is in the form of heat which helps in digestion , maintain right body temperature . Any imbalance in our health gets reflected by fever. Excess of agni (sun in summer ) creates discomfort and shortage of it in winter also creates discomfort . So agni is must for us but has to be in balance else problem.   In our life Son represent Agni . We see ourself protected in an able son . His good deeds bring happiness and pride in our life but his misadventure , wrong deeds can even bring pain in our life .

Fifth important tatva is Jal . Jal like earth and moon brings coolness , must for us like vayu .Can we live without water? Water in our body is must to control excess of agni. Shortage of water in our body makes us weak and can be life threatening as well. In our life Daughter plays the role of jal . Her coolness , calmness brings peace and joy . She also plays a very active role in soothing ,guiding her brother and bring balance in life just as water does to agni inside our body . Both agni and jal equally important in our life to maintain balance. similarly both son and daughter are equally important . Both have been designated by nature to play a specific role. I don’t know why people do not give equal importance to both son and daughter and crave only for son when nature has clearly displayed both as equally beneficial .

Lets live the way nature has made the universe, our body, our life and also relationship in our life . Now we should know why family is important? If we understand fully well that we are made of panch tatva , our life is also governed by panch tatva and God also created them in human form in our life as – mother ,father ,wife, daughter   and son . we as individual should respect each of the 5 relationship we have in our life . Yes each of the panch tatva has its own importance but it’s not that we can say one is more important than others and so take care of that only. If that happens, imbalance will happen to our body and then we will have diseases, agony, health problem etc. Similarly in life also each relationship is important. Can’t ignore or should not disregard one relationship for other, else there will be  imbalance and unhappiness in life.

Understanding Riskometer

Understanding Riskometer

Last few years it has been made mandatory by SEBI to display riskometer for every Mutual Fund scheme . The reason behind having riskometer is to make investors aware about the risk associated with that product from the return perspective. The idea no doubt is very good but the way riskometer is displayed needs more clarity so that investors gain confidence and conviction and not get apprehensive or confused .

The riskometer as displayed in the various literatures of Mutual Fund schemes looks as below with ( sample riskometer ) . Interpretation is given on left side ( level of risk ) .

Anyone who invests in any mutual fund scheme has some expectation of return which is either in form of Dividend income and/or capital gain (i.e. profit on invested amount when sold back). It is risk or uncertainty of not getting as per your expectation is what that is displayed .

We find debt funds are usually in low to moderately low category. Very very few might fall in moderate range whereas in equity funds most are in moderate and high and hardly very few in moderate . Equity funds always shown more risky than debt funds so someone who is not so well conversant with equity might fear and not invest in equity fund.

Investors need to understand why and how your principal i.e. amount invested is at risk? But before that lets understand risk.

For most of the new investors risk it means loss or chances of loss. Some think risk means uncertainty in return but that also in downside loss not on upside gain. Risk in investment means uncertainty in return i.e. getting a different return than what expecting.   It could be both upside or downside i.e. in either direction or level from what expected. Here one has to understand expectation has to be realistic and is generally based on past historical average. If someone expecting 15 % based on realistic historical average and gets 7% then there is a risk and if he gets 28% then that is also a risk. So any deviation from realistic expectation is risk whether it is positive or negative.

In investment there are many types of risk and each one of them can affect the assets (debt /equity) and various types of securities within those assets, the performance of the companies and eventually return on investment. The effects can be positive or negative. There are business risk, market risk, economy risk , country risk, currency risk  , credit risk, interest rate risk , inflation risk etc.  The overall impact gets affected in return or performance of the fund.

Riskometer describes Principal at risk . So by above fact it mean principal is more at risk in equity vis avis Debt ? Yes it is true but only in short term. As the time horizon of investment increases and becomes long term (> 5 years) then in fact surety of getting a higher return in equity is more than debt. So one can say Risk in equity is less to zero in long term. In fact if we see performance of equity fund vis avis debt fund on different time horizon say 1 year , 3 year , 5 year , 7year , 10 year ...... one will find that beyond 5 years equity giving better return than debt fund. For a period between 3 to 5 years again most of times equity giving better return than debt. For a period 1 to 3 years it is mix result sometimes equity and sometimes debt has given better return than the other . Yes less than 1 year debt has found be give safe positive return vis a vis equity fund.

In a mutual fund whether it is a debt fund or hybrid fund or equity after doing detailed research money is invested in those companies which are profitable or going to earn good profit soon. Ensuring profitability aspect is the key in fund management. Also while investing whether the security is overvalued or undervalued is also considered and fund manager takes proper care not to go for bargain where there could be identifiable loss. Money is invested in a lot range of companies with a clear objective that the overall portfolio return does not go down. So from where the principal is at risk?

On Asset front return from debt fund is from interest income earned and capital appreciation of debt securities held in portfolio. Similarly in equity fund return is from dividend income earned and capital appreciation of equity securities held in portfolio. Of all these only interest income is fixed and assured. So in a debt fund there is surety of some income definitely coming in fund. The capital appreciation part is affected by interest rate movement so that also is correctly expected by fund managers maximum of time and its likely impact on portfolio is well countered by being in securities with right term to maturity .Equity on other hand is more subject to volatile expectations of investors which reflects in market volatility . The securities held are more subject to steep valuation gain or valuation loss of the security held in the scheme portfolio. The factors causing risk and affecting return are many. Many of them are sudden and bring changes in prices of securities which is difficult to judge in short time. The psychological impact on investors in stock market at times stays for longer period as it takes some times again for confidence building amongst investors . Sometimes the impact is of very short duration. The duration of this psychological impact is also variable  So when principal is at risk here in riskometer means possibility of valuation loss of equity securities are much more than the valuation loss of debt securities in short term. The valuation of securities affect the return and so debt fall under less risky category and equity more but more in short term .

As an investor one should be clear that money is invested in best available companies after thorough research and if the stay is for longer period then investment is equity is less risky i.e. you get return better than debt and as per realistic expectations.

Higher the risk higher the return

Higher the risk higher the return

The above statement is what is very common when one evaluates for investment . It is said that when you want higher return you should take higher risk but it is also said that it is not necessary that when you take higher risk you are sure to get higher return . Many investor get confused with this . Some even start thinking if there is not surety of higher return when I take higher risk then why I should take higher risk.  

First we need to understand what do we mean by risk. For a common man it mean loss or chances of negative return . But risk in investment means uncertainty in expected return  . In other words if there is more probability of getting expected return it is less risky and if there is lesser probability of getting expected return it is more risky .

So Probability factor becomes a very important measure for risk. What are the factors that affect the probability – nature of asset , nature of security , time , economic factors, market dynamics, people expectations  etc

Most Indians refrain from investing in Equities as their understanding about risk from equities is not correct . They think it as stock price , indices only . These price and indices are symbolic representation at any point of time whereas equities are in larger terms linked with people growth aspiration ,better living aspiration . These leads to demand for creation of more and quality product and services by some or the other companies or industries . This will lead to valuation , revaluation and new price discovery of stocks and rise of indices . The constant valuation, revaluation and price discovery leads of volatility in short term but in long term quality always dictates its term and any investment in such equities lead to  much higher return. So when we say higher the risk it implies the tolerance level and patience level in short term when there is volatility . If selection of investment in good company is done then good return will come soon and later .

Some can argue what is there is economic slump ( like recession in 2009 ) . Yes there might be negative impact on return may be of some months or up to few years . But again if you believe in law of nature then again not to worry . We have seen even after the worst of cyclone , tsunami when the whole village or town is destroyed first nature cools down and people again work hard to restore lives and infrastructure back to normalcy or even better . So always remember there is one truth of this whole world – everyone strives for growth and betterment . All nations, all economies , all corporate , all individuals all want growth and so the economic slump will not last forever and growth will come sooner or later as growth again is linked with our aspirations and better life which is through some products or services and investment in the equities of those companies will ALWAYS give you a higher return .

So we can say higher the risk tolerance ( showing patience by staying invested and not getting affected by volatility ) in short term but invested in good quality equity ( i.e stock of those companies which are producing good product in demand ) there is ALWAYS a higher return and no risk of losing in long term.

Debt Mutual Fund vs Bank Fixed Deposit – An analysis

·         Why an investor prefers Bank Fixed Deposit over Debt Mutual Fund – it is assurance of fixed return which can not be guaranteed in Debt Mutual Fund . Its also the safety of capital which again in not guaranteed as Debt Mutual Fund is market linked .

·         So what adds confidence to investors – Assurance ( clearly stated ) or Fixed return or safety of capital or all ?

·         Assurance from a credible issuer has value (i.e bank Fixed Deposit and good rated Company ) . Assurance from lesser rated debt Fixed Deposit is hardly preferred so assurance is linked with quality of issuer .

·         Safety of capital is again linked with the credibility of the entity whose Fixed Deposit purchased i.e good rating ones . Banks are considered to be most credible .

·         Fixed return is a percentage return in numbers ( e.g 8% )conveyed while investing but when redeemed does the investor gets  in hand the same return what he was expecting ? In notional terms yes but in real terms , no. He gets a net return which is lesser than gross return ( what has been communicated ) due to inflation and taxation . so if inflation is 5% the net return reduces to 3% . Further you have to pay tax as per your tax bracket on gross and not on net after adjustment of inflation . So net final return will be further less and can be even negative .   what is important – what is told or what you get in actual ? 

·         If one get in actual ( in hand ) lesser than what assured can this be called assured in real sense .

·         So now we need to evaluate Debt Mutual Fund on these 3 perspective – Clearly stated ( assured ) , safety of capital i.e will get back principal and fixed return what has been clearly stated .

·         In Fixed Deposit you are a lender . Its the borrower ( Bank OR Cos ) which decide what return you will get and you have to choose from whatever offered .

·         In Debt market the return is decided by borrower . Govt of India being the biggest borrower sets the lending and borrowing rate pattern in the economy through RBI through RBI by repo and reverse repo rate. No entities in the organised market can lend the money at a lesser rate than repo rate .   

·         Lending rate of Bank  > Deposit rate in bank Fixed Deposit ( of same maturity ). Obvious reason is banks should have some margin for operation and profitability . Also if it is the other way round there it will create an arbitrage opportunity for investor i.e borrow at cheap rate from bank and invest in the same bank at higher rate and gain  . Yes there are arbitrage opportunity but one has to risk his capital in lower rated company or exposure in interest rate derivatives . 

·         in Debt MF you are a not a lender but a proportionate owner in the fund as per your investment which is denoted by nos of units you hold .

·         Its obvious that as an owner you will always like the best possible return along with safety of capital as well .

·         Lets analyse safety of Capital first . As communicated earlier it has to do with creditability of borrower . In Debt Mutual Fund after doing a thorough research the best of companies in terms of profitability , safety are filtered and then money is invested in some of those good companies / issuers debt instruments .  So research ensures you quality ( safety ) and diversification ensures not exposing your money to one or few companies but more ( additional safety )

·         Fixed Return – If bank has lent money to Corporates etc it will get interest on regular basis . If money invested by Debt Mutual Fund in good debt securities will the fund also not get interest? It will also earn interest . Further here money is not invested in one particular yield i.e money is invested in Debt securities of different rating ( AAA, AA+, AA, AA- ...)  and also debt securities of different term to maturities ( few month to few year ) . Combining these two aspects the fund strives for a higher but safe return  .

·         If in a Debt Mutual Fund there is no assurance on return but that does not mean an investor should doubt on safety . Safety is assured from the quality of company and its profitability which is well taken care . Non assurance of return in any mutual fund product is because investment is done in marketable securities ( i.e those securities which are bought and sold ) where prices can change on daily basis and as securities are valued daily based on market prices assurance can not be given .

·         In a Debt Mutual Fund credit or default risk is well taken care by ensuring money invested in good quality company . Yes there can be interest rate risk ( Price of the debt securities can go up or down with the decrease or increase in interest rate ) but investor worry is  downside risk ( market value of security going down  ) only when interest rate rises .

·         If interest rate rises and you are in Fixed Deposit non cumulative option you don’t gain as your interest rate was fixed . When interest rate fall there also you don’t lose for same reason . If bank has assured of 7% per annum return on 3 year deposit then if next year interest rate changes to 6% or 8% you get the same 7% in a fixed interest Fixed Deposit But in Debt Mutual Fund if interest rate rises the market value of debt securities go down but at the same time the coupon interest earned can be reinvested at a higher rate  . In case in Debt Mutual Fund if interest rate falls the market value of debt securities goes up but at the same time the coupon interest earned can be reinvested at a lower  rate . So we see that some portion of rise and fall gets nullified by fund manager in Debt Mutual Fund.

·         What could be interest rate movement in short term is not a big puzzle so in a Debt Mutual Fund the Fund Manager is well aware of possible move and protects the portfolio market value in case of uprise in interest rate by either going for floating rate debt securities or more allocations in short term debt securities as there the fall is lesser compared to long term debt securities . In case he expects lowering of interest rate then he will have more allocations in long term debt securities as there the rise in market price is higher than  compared to short term debt securities .

·         A contra judgement on interest rate movement can only lead to large loss which is a very very rare possibility . In probability terms it can be 1% whereas 99% times judgement is right which can be validated by historical  data last 5 decades of MF .

·         One fear in the mind of investor could be safety of capital. What if a company which was good ( profitable ) when invested became bad ( non profitable ) later on . One major difference between bank or any Fixed Deposit is that the money given to company as loan get struck up till maturity whereas in Debt Mutual Fund the money invested in tradeable security . The research wing keeps monitoring the financials , operation and management of the company where invested and if they get any negative feeling the fund manager sells those debt securities  much before the market realises , thereby avoiding creating of any NPA in the fund portfolio . Again historical data are there for cross checking .

·         In Fixed Deposit you get a fixed return but Debt Mutual Fund you get fixed return plus there is scope of capital appreciation .

·         Regular / periodic income earned in Fixed Deposit is called Interest whereas the same in Debt Mutual Fund is called Dividend . Dividend is tax free in the hand of investor whereas interest income are taxable .  Fixed Deposit has TDS but there is no TDS in Debt Mutual Fund.

·         Interest in Fixed Deposit is fully taxable . Bank deduct TDS @ 10% initially but the whole interest income to be taxed as per income slab whereas dividend is tax free in the hand of investor . Its only the Dividend Distribution Tax  which on the gross dividend is much less ( approx 28.33 % of gross dividend in case of individual ) .

·         There is no capital gain in case of Fixed Deposit so no tax . In case of Debt Mutual Fund if redeemed before 3 years the gain is taxed as per marginal tax bracket where investor lies . For a period more than 3 year Debt Mutual Fund gives better return net of tax as there is indexation benefit which is not in Fixed Deposit. Here the gain is taxed @ 20% with indexation benefit . In Fixed Deposit you get he same principal back in notional term but in fact it is less as inflation has reduced the real value . In Debt Mutual Fund you are compensated for loss due to inflation due to indexation benefit .

·         In a Debt Mutual Fund you have a flexibility of managing your cash flow need either through dividend option or partial withdrawal as and when you want or through Systematic Withdrawal Plan if the requirement is periodic and fixed . You can stop SWP any time, change the amount any time.  In Fixed Deposit withdrawal allowed but again not with so flexibility or ease .

·         You have easy flexibility to move from  debt to equity and vice versa through Systematic Transfer Plan in case you want to take advantage of equity market or protect your investment value if equity not doing well whereas not possible frequently and with ease in Fixed Deposit. 

Attractiveness of Indian Equities

Attractiveness of Indian Equities  

Analysing strength of Rupee first

·         The level of our currency depends on many factors but the two most critical factors are fiscal deficit and current account deficit

·         Fiscal deficit is the difference between what your government earns and what it spends .

·         India being a growing economy and also due to lots of social benefit schemes spending has always been on rise  .

·         Earning is taken care by Taxes + Borrowings in case of shortfall

·         If Spending > Earning and taxes are not able to compensate then more borrowing by Government

·         More borrowing means more pressure on payment and when you borrow a lot, your credit profile in the outside world goes down thereby rupee at times become weaker .

·         Current account deficit is the difference between what India exports and what India imports.

·         Our imports have always been higher than exports, resulting in high demand for US$

·         The twin impact of high fiscal deficit and high current account deficit resulted in high demand for US$ and kept the Indian Rupee under pressure .

Will Rupee expected to get Stronger from its present level next 5 years ?

·         Over the past three years, India seems to have solved both the above mentioned problems

·         India’s fiscal deficit has reduced by ~Rs. 1,50,000 crores over last two years because the current government is spending less and earning more . The current government has made the previous government populist policies more efficient by bringing transparency and accountability in operation ..

·         On the revenue front, India’s tax collections grew at 18% in FY17, the highest in last seven years. Most of the gains due to declining oil prices .        This government’s relentless focus on tax compliance has also helped (demonetization was one of the many steps in this direction).

·         The current account deficit  problem has been solved through structured control over gold import , incentivising domestic physical gold savers  by offering various financial products like gold bonds and ETFs.  India’s import bill has reduced by more than Rs. 400,000 crores or US$61bn.  Thus, India needs far lesser US$ now than two years back. It’s only natural that Indian Rupee should

become stronger.

·         This indicates strength of Indian economy .

How can you benefit from this trend of strong rupee?

India seems to be more stable economically in a relatively unstable world economy.

·         FIIs inflows in Indian equities has been phenomenal ( US 40 billion last FY ) . They hold approx 25% on Indian equities vis a vis 15% held by domestic mutual funds . It seems they have confidence in Indian equities .

·         Domestic investors savings moving to equities and not in real estate and Gold . Declining FD rates also motivating investors to go for equities .

History  --  Past 10, 15 years Indian equities have given one of the best return

Present  -- A stable Government trying to control corruption ( subsidy directly to bank account , demonetisation ), increase in taxation ( , proper allocation of resources , economic reforms ( GST )

Future – Strong consumption pattern, focus on self reliant economy etc will boost growth and economy thereby more return through Indian equities . Risk from equities can be minimised by investing in good equity mutual fund products .