INDIA’S ECONOMIC growth has slowed down in the past few years. In the July-September quarter, it was 4.5 per cent, the lowest in six years. Accordingly, the National Statistics Office has reduced its growth forecast for the year 2019-20, from 6.1 per cent to 5 per cent.
How do you reposition yourself as an investor in such a situation, as such shifts in economic performance could alter the market returns, which could distort your calculations on financial goals? Historical data suggest that economic slowdown is accompanied by lower returns from equity investments. For instance, the year 2008, which witnessed the global financial crisis, saw equity returns dropping to (-) 51 per cent. At the same time, such phases could mean better returns in some other asset classes. In 2008, for instance, debt investments gave a return of 28 per cent.
That gives us some direction on re strategising in the time of slow economic growth.
Rebalance your asset allocation
Esta historia es de la edición March 22, 2020 de THE WEEK.
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Esta historia es de la edición March 22, 2020 de THE WEEK.
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William Dalrymple goes further back
Indian readers have long known William Dalrymple as the chronicler nonpareil of India in the early years of the British raj. His latest book, The Golden Road, is a striking departure, since it takes him to a period from about the third century BC to the 12th-13th centuries CE.
The bleat from the street
What with all the apps delivering straight to one’s doorstep, the supermarkets, the food halls and even the occasional (super-expensive) pop-up thela (cart) offering the woke from field-to-fork option, the good old veggie-market/mandi has fallen off my regular beat.
Courage and conviction
Justice A.M. Ahmadi's biography by his granddaughter brings out behind-the-scenes tension in the Supreme Court as it dealt with the Babri Masjid demolition case
EPIC ENTERPRISE
Gowri Ramnarayan's translation of Ponniyin Selvan brings a fresh perspective to her grandfather's magnum opus
Upgrade your jeans
If you don’t live in the top four-five northern states of India, winter means little else than a pair of jeans. I live in Mumbai, where only mad people wear jeans throughout the year. High temperatures and extreme levels of humidity ensure we go to work in mulmul salwars, cotton pants, or, if you are lucky like me, wear shorts every day.
Garden by the sea
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RECRUITERS SPEAK
Industry requirements and selection criteria of management graduates
MORAL COMPASS
The need to infuse ethics into India's MBA landscape
B-SCHOOLS SHOULD UNDERSTAND THAT INDIAN ECONOMY IS GOING TO WITNESS A TREMENDOUS GROWTH
INTERVIEW - Prof DEBASHIS CHATTERJEE, director, Indian Institute of Management, Kozhikode
COURSE CORRECTION
India's best b-schools are navigating tumultuous times. Hurdles include lower salaries offered to their graduates and students misusing AI
