Can I bet on the India growth story and invest in equity?

While recording an episode for the Let’s Get Rich With Pattu Podcast, a question that naturally emerged was, “Can I bet on the India growth story and invest in equity?” The question discussed in the podcast has been covered here: What is the probability the Indian equity market will perform well in the long term?The short answer is: Yes, the India growth story is a reasonable bet to ignore short-term hiccups and put our faith, time, and money into investing in equity. However, there are no guarantees.The long answer is that the Indian economy is shining and expected to shine in the coming decades. We have a robust democracy.  Governments are keen to help businesses and entrepreneurship.Our population is a good mix of young and old and is still growing. They would like to spend more and more compared to earlier generations. This means there is plenty of scope for all businesses to grow and shareholders to get sustained profits for at least a few decades. This means we will likely be one of the fastest-growing economies for some time.See:An Indian Economic Strategy to 2035 – a study commissioned by the Australian government.India’s Growth to Remain Resilient Despite Global Challenges – World BankSo, Indian equity is indispensable for long-term goals. However, there are many short-term and long-term disruptors, both of which will impact long-term returns.Short-term disruptorsPolitical UncertaintyOil prices, weak currencyToo much rain or too little rainConflict with our neighboursInternational conflictsNatural interest rate cyclesBank scams, corporate scandalsLong-term disruptorsGlobal warmingClimate changeToo much plastic use, etcIf you want to be dismissive about these factors, we urge you to reconsider: World’s first year-long breach of the key 1.5C warming limit.The developed nations (USA, Canada, Europe, Japan, Australia, New Zealand, etc.) have benefited from an early mover advantage. They became “developed” by the time the destruction of Mother Nature was half complete. India will not have the same kind of freedom.India has so far done an impressive balancing act – it has succeeded in reducing its emissions rate by 33% over 14 years. India aims to achieve net zero emissions by 2070 and meet fifty per cent of its electricity requirements from renewable energy sources by 2030.Also see: India’s clean energy transition is rapidly underway, benefiting the entire world.These are far from easily achievable, but I am glad the government has the right priorities. No one can predict if climate change will or will not curb Indian economic growth, but certainly, we don’t have much wiggle room. In my opinion, beyond the next 15-20 years, it (climate change) can have an impact. That said, I am still reasonably optimistic.What should investors do?India ticks almost all the boxes for a thriving economy and stock market sentiment. So, there is a reasonable chance that Indian stock market returns would beat inflation (assuming we expect less and invest enough with a proper strategy). See: Equity MFs are too risky with no guarantees; why should I invest in them?Nature willing, the outlook is promising, but that will not always reflect in our returns. See: The Stock market always moves up in the long term, but returns move up and down! So we can’t keep investing and leave the fate of our hard-earned money to luck. We need a proper investment strategy that is independent of market conditions.Long term investors must have a solid systematic risk management plan by gradually de-risking their equity exposure. Our research – explained in the goal-based portfolio management course and incorporated into the freefincal robo advisor shows that this has more than a reasonable chance of success regardless of market conditions. This is also explained here: do not expect returns from mutual fund SIPs! Do this instead!Such a gradual and systematic equity de-risking is the margin of safety that will make our chances of success reasonably independent of future market conditions and their forecasts. Do share this article with your friends using the buttons below. 🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users! Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 1,000 investors and advisors use this! New Tool! => Track your mutual funds and stock investments with this Google Sheet! We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.Follow Freefincal on Google NewsSubscribe to the freefincal Youtube Channel.Follow freefincal on WhatsApp Podcast: Let’s Get RICH With PATTU! Every single Indian CAN grow their wealth! Listen to the Let’s Get Rich with Pattu Podcast You can watch podcast episodes on the OfSpin Media Friends YouTube Channel.Let’s Get RICH With PATTU podcast on YouTube. 🔥Now Watch Let’s Get Rich With Pattu தமிழில் (in Tamil)! 🔥Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincalHave a question? Subscribe to our newsletter using the form below.Hit ‘reply’ to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question. Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!About The Author Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice. Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free!  One-time payment! No recurring fees! Life-long access to videos! 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We made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So, in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parents plan for it, as well as teaching him several key ideas of decision-making and money management, is the narrative. What readers say!Feedback from a young reader after reading Chinchu gets a Superpower!Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. – Arun. Buy the book: Chinchu gets a superpower for your child! 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