Where should you put your money in Financial Year 2024-25?

In this blog, we will discuss- how to plan your finances for Financial Year 2024-25, and we will also give you a complete view of the current financial environment.

Financial Year 2023-24 was a positive year for equity investors globally, especially in the context of India's markets performing exceptionally well. In FY2023-24, global markets grappled with significant challenges, be it the war between Israel and Hamas, then the prolonged Russia-Ukraine conflict, and the ongoing U.S.-China tensions. Despite all this, the world economy managed to avoid slipping into a recession.

Now, in Financial Year 2024-25, elections are scheduled to take place in 40 nations, which cover over 40% of the world's population and GDP. Notable events include Taiwan's January presidential election, India's April polls, EU parliamentary elections in the summer, the US presidential election in November, and a UK election by December 17.

Indian economy has shown resilience and equity markets have been outperforming. Going ahead most expect this trend to continue as India will be amongst the highest growth economies in 2024.< Source: Moody's March Report > It's not uncommon for financial markets to be filled with surprises and deviations from predictions. Although events like US Fed Pivot, Indian Election 2024, events like war,  Energy prices and consumption recovery can be a risky bet for markets. However, India remains an option for investors with a long-term investment horizon.

Equity funds can offer investors a way to participate in the potential growth of the stock market while diversifying risk across a range of companies and sectors. Some of the  Equity Funds that investor may consider investing  are:

Kotak Multicap Fund Get The Power Of All In One! 

Since markets are at an all-time high, investors often wonder where to invest their money, whether to choose the stability of Largecap funds or invest in the currently high performing Small and Midcap category. Kotak Multicap Fund, This fund invests in the mix of largecap, midcap, and small-cap stocks that work together as a dream team to create winning opportunities.

Kotak Equity Opportunities Fund Large and Mid-Cap fund. It finds opportunities for you

This fund looks for opportunities across sectors based on performance and potential of companies within the sectors. The fund manager has the flexibility to invest in a mix of large and midcap stocks from various sectors. The allocation between large caps & mid-caps would broadly depend on the choice of sectors, business environment & valuations.

Kotak India EQ Contra Fund It's Smart, It's Sharp! 

The investment objective of the scheme is to generate capital appreciation from a diversified portfolio of equity and equity related instruments. However, there is no assurance that the objective of the scheme will be realized.

Kotak ELSS Tax Saver Fund Benefits of tax saving with growth potential of Equity

Tax saver funds are Equity Linked Saving Schemes (ELSS) that invest in equity and equity related instruments, and provide benefits of tax savings. Investing in ELSS qualifies for a tax deduction of up to ₹1.5 lakhs under section 80C of IT Act 1961 under Old Tax Regime. The scheme is having a lock-in period of three years from the date of units allotment.

Well, the central banks have struck a fine balance between growth and inflation and kept interest rates high, to keep inflation under check. Fed has indicated or rather we can say, market expects there will be rate cuts in 2024. If inflation continues to ease, there could be rate cuts in 2024. The end of the hiking cycle could augur well for long term bond.

Some of the Debt Funds that you may consider in the current scenario are:

Kotak Banking and PSU Debt Fund Diversify and give your fixed-income options the boost they need!

An open ended debt scheme predominantly investing in Debt instruments of banks, PSUs, PFIs and Municipal Bonds.

Kotak Medium Term Fund Invests in Medium term debt

The investment objective of the scheme is to generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments. The fund has an average maturity floor of around 3 years and a ceiling of around 7 years. As a result, the fund occupies a mid-segment space between the long duration and the short duration bonds. Likewise, the fund's merits also tend to be a balance of the long term and the short term bond funds. The fund operates largely on a Hold-Till-Maturity (HTM) strategy.

Kotak Dynamic Bond Fund High Credit, Duration-Flexible Fund

It is a debt scheme that seeks to maximize returns through active management of a portfolio of debt and money market securities. It invests dynamically across asset classes in high quality assets and has relatively lower risk / volatility profile, as the mark to market component is low.

Kotak Long Duration Debt Fund 

It’s an open ended debt scheme investing in instruments such that the Macaulay Duration of the portfolio is greater than 7 years.

However before investment , investor need to evaluate their risk appetite, evaluate products available in the market, market scenario, performance of the schemes, TER etc.

 

Riskometer:

 

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.