Budget 2014: India's falling savings, inflation, investments and returns

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India’s savings and investment peaked at 36.8% and 38.1% of GDP, respectively, in FY08. (AP) India’s savings and investment peaked at 36.8% and 38.1% of GDP, respectively, in FY08. (AP)
SummaryBudget 2014 explains the manner in which money is to be spent and the way it is to be raised.

removal of supply-side bottlenecks, expedition of stuck projects and boosting of capital expenditure will benefit the economy.

Brijesh Damodaran, founder and managing partner, Zeus WealthWays, says equity investors should look at stocks from an ownership point of view as returns over the long term would be higher. For debt funds, he recommends investing for a duration of over 12 months. And, with US equity making a comeback, gold may feel the heat. Even real estate is becoming less favourable with investors as prices have stagnated in the past two years.

Analysts say investments made with a long-term perspective would fetch better returns. As diversification is important for long-term wealth creation, investors must understand their risk profile, create a portfolio framework, and monitor it regularly.

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