Budget 2024: Hope govt addresses inflation by considering tax reductions, say co-founders of Goela School of Finance
Harsh Goela and CFA Aditya Goela, Co-founders, Goela School of Finance, believe the upcoming budget will focus on rural economy’s revival. They hope the government addresses inflation by considering tax reductions. Meanwhile, for the next year 2024, they advise diversifying beyond equities for a resilient portfolio to asset classes like real estate, fixed income, and precious metals.
Edited Excerpts:
What are your expectations from the upcoming budget?
As the upcoming budget looms, we look for a focus on rural economy’s revival. We hope the government addresses inflation by considering tax reductions, both direct and indirect, putting more money in the hands of the people.
How should one prepare a portfolio for the 2024 budget?
In anticipation of the 2024 budget, consider a portfolio aligned with the government’s ongoing initiatives like Make in India, National Logistics Policy, and infrastructure development. Focusing on sectors set to benefit, such as railways and ethanol production, could position your portfolio for potential growth in the coming fiscal year.
Will India remain an attractive destination for FIIs in 2024?
As India retains its position as the fastest-growing major economy in the financial year 2024, and with the global slowdown, FIIs have no better choice than to invest here. India remains a compelling destination for foreign investments.
What kind of financial planning should one do at the start of the year?
Start 2024 with financial prudence- prioritise term life insurance, secure health coverage, and build an emergency fund with liquid options. Embrace strategic stock market investments for potential growth. Follow the 40% EMI rule to manage loans wisely.
Apart from equities, which other asset classes should investors accumulate in 2024?
In 2024, diversify beyond equities for a resilient portfolio. Consider allocating to promising asset classes like real estate, fixed income, and precious metals. A well-balanced mix can enhance stability and capitalise on varied market opportunities.
Which sector should one stay away from next year?
In the upcoming year, exercise caution with loss-making new-age stocks, the oil and gas sector due to the strong focus on renewable energy, and companies heavily reliant on exports due to the global slowdown. Explore more resilient and sustainable investment options for a balanced portfolio.
What lessons did you learn from 2023?
To build lasting wealth with your investments. Pay more attention to your entire portfolio than each stock. Regularly assess your overall portfolio’s PE (price-to-earning ratio) and compare it with other indices with the same risk. This helps to see if your portfolio has reasonably priced shares.
What is your Nifty FY24 target?
Predicting Nifty 50 levels is a futile activity, it’s like catching the wind. But if you have to ask I would say that we can see Nifty around 22000 – 23000 points by the end of the current financial year if elections align with exit polls.
Will the mid and smallcaps remain attractive next year as well?
As we approach the coming year, the performance shown by small and midcaps is noteworthy, with index returns ranging from 35% to 40% over the last seven to eight months. While valuations appear elevated, there are compelling stock-specific opportunities within this space.
One piece of advice for new investors?
For new investors, a crucial piece of advice is to prioritise education before execution. Take the time to understand the basics of investing, assess risk tolerance, and diversify wisely. Patience is key; let your investments grow over time rather than seeking quick gains. In the dynamic world of finance, knowledge is your greatest asset.
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Published: 19 Dec 2023, 12:42 PM IST
