We are going to see a lot of challenges in equity investing. As the Government presents its full budget for this year, the markets are a little bit edgy. They’re not sure of what the Government is going to deliver in its pre-election budget.

Many investors fear that this budget will signal more socialism. It could put some benefits in the hands of the middle class and also send out some very adverse signals to the rich. We may see taxes on the rich, particularly on the new breed of billionaires that the current start-up era has thrown out. This may send out a wrong signal to the global investing community that India is not open to its entrepreneurs becoming wealthy and would rather take away their wealth to spend it on what the Government deems fit. If the budget is only going to carry political messaging and not have reforms at its core, the markets are going to be disappointed.

The uncertainty around the 2024 elections is going to make investing tougher. This year promises to be full of uncertainties, adversities, and fear. Experience tells you that during such tough phases, an investor must be intensely focused on what investment action he needs to undertake to achieve superior returns. Such years are very good for investing.

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