Budget 2019: What Should Investors Do to Make Money?

Video Editor: Vishal Kumar

What should investors do before the Budget 2019? Should they invest money now or wait till the Budget? Should they wait till the elections? These are some questions that seem to be troubling investors these days.

If you want to save and make money, veteran investor Basant Maheshwari promises to answer all the important questions.

During this difficult time for the market, which shares should one buy? Should one invest in mid-cap or small-cap shares? What will the market get in this Budget?

What Will Be the Impact of the Budget?

Acccording to Maheshwari, the Budget's effect won't last for more than two to three days. However, since this is the government's last Budget, it wouldn't want to disappoint people.

“This is the government’s last Budget. It will try to consolidate its vote bank. So, we need to watch this Budget closely. The middle class has got nothing in the last 4-5 years. The trader community is troubled because of GST.”

Basant Maheshwari, Co-Founder, Basant Maheshwari Wealth Advisors

The Government's Strategy

The government will try to focus on growth in the Budget. It wouldn’t want markets to tumble just three months before the elections. So, they will try to restore balance in the market, he says.

The shares that have been doing well will continue to do so, so investors should focus on them, according to Maheshwari.

In earlier budgets, there used to be many things such as excise. Now, there’s only GST. So, this Budget won’t have much impact. But, since this is the last Budget, the market is expecting some benefits for the farmer community and the middle class, Maheshwari points out.  

Tips for Investors

Maheshwari’s advice to investors is not to wait for the next government formation or the right price. He says,

“If you wait for a new government, you won’t get a good price. The market is very alert. It is assuming that this government will return, but with a lesser mandate, and maybe with some outside support. If a coalition government is formed, Nifty will come to around 10,000. Nobody has earned money by waiting for so long. If you have money, invest in good companies and wait.”

“You can make money in mid-cap shares. But small-cap shares have a lifecycle of four years. In the first year, you make money, in the second, you lose money and in the last two, you just wait. It is fashionable to say you’re a small-cap stock-picker, but one can’t make money here. Government-related sectors such as Infra shares could be influenced after the elections. However, if there’s a change in government, then, after the elections, consumer and financial shares will work. So, we shouldn’t be bothered whether it’s a mid-cap, large-cap or small-cap share, we should invest in good companies.”  

Basant Maheshwari, Co-Founder, Basant Maheshwari Wealth Advisors

(Basant Maheshwari is a veteran investor and fund manager.)

(This article was originally published on The Quint Hindi.)