RBI Governor started the out of turn meeting with Mahatma Gandhi quote “We may stumble and fall, but shall rise again…” to address the concern of liquidity.
Some of the salient features are:
Already the SBI 1-3 years FD interest rates are at 5.5 per cent, with today’s rate cut in Repo, further interest rates cuts are in the offing.
So, what happens to economy when interest rates fall continuously.
It clearly shows when the interest rates fall, it helps economy to grow which in turn helps company to post decent profits, the by-product market to move up. Table will help you to understand in detail.
My suggestions to investors: With too many negatives, I suggest you to start SIP immediately and if you have lumpsum invest in liquid fund and route through STP over 9-12 months. When tide changes you will see the portfolio giving high double-digit returns.
“Be fearful when others are greedy, and be greedy only when others are fearful.”- Warren Buffett.