THE NEW WAY TO INVEST IN 2025

THE INTRO-INVESTING

well, This is something I have been Waiting eagerly for that is when the Central Government and Central Bank of India will make a Decision that will Relate them together to generate extra force for the country, well this was something that was supposed to happen 4 months Earlier Unfortunately it just happened now.

What am I talking about?
well if you have read my blog where-should-we-invest-in-these-markets-in-2024 I did Talk about the upcoming macroeconomic conditions for India as it was supposed to happen by the month of October which it just Didn’t as RBI thought it was not necessary for them to follow the Proceedings of reserve currency, but now they are just bound to do it, so they did.
I also upload my video in youtube as well for the rate cut but Unfortunately nothing went as planned which you can see here.

THE ANNUAL BUDGET-

now let us come to the real point which we just it to be is the annual budget where the central government Changes some tax considerations for the upcoming financial year.

Due to the Geopolitical scenario, the Finance minister has been bound to wave of taxes upto 12 lakhs( which means no single entity be it a self-employed, employed, or small business, Don’t have to pay any Taxes till their income of 12 lakhs ) after the tremendous Increment in taxes in Previous budget hearing.

This Definitely gave a Massive boost to the middle-class people whose annual earnings are 12 lakhs and below which is almost 75% of India’s population, the central government was forced to do it because they saw how the D.O.G.E in America went on.

THE REPO RATE CUT-

by now we all know that the REPO rate cuts were supposed to happen by October 2024 and it is Happening now as the central bank (RBI). gave 25 basis points which is .025% cut and the REPO rate dropped from 6.50%- 6.25%.

if you had read my previous blogs i have Mentioned that whenever there are rate cuts, it Means new money is pumped in to market and that means the valuation of our money INR Against rupees goes down as it slipped from 82 in October to 87 in February.

This rate cut also brings in lots of devaluation for the rupee which makes it highly Inflated Against gold and lower in value Against the reserve currency of the dollar.

THE NEW WAY TO INVEST IN-

since the rupee is slipping away from its original position it’s not safe at all to put your money in fixed deposits, cash, or T-bills, Because the level of Return you just get there is equivalent to the Inflation ( combination of WPI + cPI) which is just roughly ~7%, but as per RBI MPC meeting stats they declared the inflation of CPI to be around 4.2 % which I Don’t think it right.

The reason is that they are thinking of the rise or fall of inflation from 1 quarter to another but the real Difference in inflation did come in from 2020 money printing which led to a rise in the price of all asset classes.

due to this rate cut and 12 lakh no tax system, we will see a huge surge in Indian market capital, so as I publish this blog I do recommend every single person to invest in undervalued companies ASAP, as the markets will be rising higher Which is a good result.

But of course, this will surely give rise to inflation as well and more for Shrinkflation and as a result, the financial year 2025-2026 will be a year to keep an eye on your portfolio.

my recommendation is if you can not everyone but if you have some extra money then surely you can invest in Bitcoin as it seems much safer Compared to the rupee.

If you ask me how much should we invest?
I would say a maximum of 1-2% of your Portfolio, should be enough since it has no correlation with any Other asset which does give you the option to diversify your position.

if you haven’t understood what is bitcoin and cryptocurrency, i will write the details on crypto- currency and its details in Order to understand easily.