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According to Karvy Private Wealth's India Wealth Report 2016, the total wealth held by individuals in India grew by 8.5% to Rs 304.2 lakh crore in the year 2016 (see table below).
Investments in financial assets also grew, but at a slower pace: 7.14%; mainly due to subdued performance of equity. Among financial assets, there was reasonable growth in fixed deposits, bonds, provident funds and Small Savings Schemes (SSS); the last mainly due to the success of the Jan Dhan Yojana. Individual wealth in physical assets (such as gold and real estate) too grew sharply at 10.32% vis-a-vis a 2% fall in FY15.
However, the economy is in for a rocky road after demonetisation, which potentially is a risk to the economic growth clocked. After the World Bank's downward revision of growth estimates for India, the IMF too has reduced growth estimates for India to 6.6% (from 7.6% projected in October 2016) for the current fiscal year 2016-17 citing the impact of demonetisation. "Temporary negative consumption shock induced by cash shortages and payment disruptions associated with the recent currency note withdrawal and exchange initiative," were the primary reasons said the report released recently.
Besides, there are global factors in play such as: 'Trumponomics'; the Federal Reserve's endeavour to normalise interest (as market expectations for inflation have advanced); the onset of the process for 'Brexit' taking pace from end-March 2017; economic slowdown in China; and morose economic conditions in Japan (although there's some optimism reported of late).
In such uncertain times, where the path to wealth creation is full of challenges, it is important to seek the help of a Certified Financial Guardian (CFG) who will advise you with enough care and prudence, much as he would adopt while managing his own money.
There is no dearth of financial advisors in the country. Every one flaunts a certification or two and suffixes his/her name with an acronym. But your financial advisor should be a 'Financial Guardian' who is able to recognise the financial and emotional side of the client / prospect using these simple (yet important) principles:
So hope you recognise the need for a financial guardian, who can handhold you professionally and prudently in the journey of wealth creation. Irrespective of where you stand in your finances, it would be wise to seek a second opinion of CFG.
A CFG commits to adhering to these steps and places the client's best interest ahead of his/her, at all times. It is time to search for one nearest to you and take an appointment.
PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.
Tata Consultancy Services (TCS) has declared results for the quarter ended June 2016. The company has reported a 3% QoQ increase in consolidated sales while the consolidated net profit was up 0.3% QoQ.
Tata Motors Ltd has reported a 19% YoY and 202% YoY growth in sales and net profits for the quarter ended March 2016.
Idea Cellular has reported a 12.4% YoY growth in the topline and a decrease of 0.4% YoY in the bottomline for the quarter ended March 2016.
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