Investments and personal finance is a domain every working professional has to be wary and savvy about. Without proper planning for their savings, one may face mid-life crisis when financial inflow may become less regular or less in value. Thus the domain of investments and personal finance is gradually increasing in prominence for the common man.

It is important to understand, even with the best of intent, many investments may become as good as dust, just because of the choices of projects were wrong. Funds management is indeed a tricky thing and while the common man should strive to understand its nuances, it is better to leave it to the professionals to implement it. Now with the given economic promise of better days (or as our government aptly puts it, Acche Din), we need to identify portfolios of solutions that can really capitalise in the given market scenario. Mutual funds are one of the better option to go for, especially if you want higher return (albeit with higher risk) and thus beat the corrosion of the value of your savings due to inflation.

One of the better mutual funds which has been designed in recent times is the New India Portfolio. This has been done specifically to improve the returns based on the ever improving macro-economic revival “India Shining” is witnessing amidst such government driven initiatives like Make in India. Besides the statistical improvement of macro-economic factors, the environment for growth became more conducive ever since the RBI started cutting rates (2 rate cuts of 25 basis points have so far been done; more to come). This is precisely what this portfolio tries to leverage while focussing on a long term wealth creation strategy. It is a well diversified (meaning risk is mitigated from specific industry challenges) thereby ensuring that the investments benefit from higher resource utilisation or deleverage in an easing interest rate also benefit from operating and financial leverage. A major part of the NIP is in a diversified fund which invests in blue-chips. The rest is distributed in the mid-cap fund, diversified theme fund, and a debt fund, thereby ensuring that the investments benefit from higher resource utilisation or deleverage in an easing interest rate also benefit from operating and financial leverage as compared to large cap investments) and thereby promises to generate high returns for its investors.

However what is imperative for all stakeholder of Team India is that this portfolio also contains a fund that will invest in multiple themes  like infrastructure, resources, finance, social development, and agriculture, and these are the envisioned building blocks that are meant to act as accelerators for the Indian economy. So if India is to really “Shine” in the near future, these are the sectors that will play a critical role in the development of the economy, so that India moves from an emerging economy status to a developed economy status. Corporate investments will also be an instrument in this movement of wealth creation across all stake-holders.

However please note that all mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs.

By Kar

Dr. Kar works in the interface of digital transformation and data science. Professionally a professor in one of the top B-Schools of Asia and an alumni of XLRI, he has extensive experience in teaching, training, consultancy and research in reputed institutes. He is a regular contributor of Business Fundas and a frequent author in research platforms. He is widely cited as a researcher. Note: The articles authored in this blog are his personal views and does not reflect that of his affiliations.

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