Money Guru: As India gears up for 75th Independence Day celebration, where should you invest for benefit in New India? Expert decodes

Money Guru: On Monday, August 15, 2022, India will complete its 75th year of independence. In these 75 years, India witnessed an unmatchable growth story. As the country strives to become golden bird once again, your future will can also become golden if you choose the right investment strategy.

In today's edition of "Money Guru" Zee Business Swati Raina held a special discussion on 'New Funds to Invest in New India' with expert Vijay Mantri, Co-Founder of JRL Money.

India's Growth Story
In the last 75 years, per capita income grew 567 times from 1950 to 2021-22. Whereas from 1960 to 2021, GDP grew 80 times. A total of 4.8 million tonnes of food grains were imported in 1951 and 2 million tonnes of food grains were imported in 1971. In 2001, 29 lakh tonnes of food grains were exported. Whereas in 2020 59 lakh tonnes of food grains were exported.

Year                                Per capita income
1950-1951                      `265
2000-2001                      `18.6 thousand
2010-2011                      `59.9 thousand
2021-2022                      `1.50 lakh

Year                                 GDP
1960                           $0.04 trillion
1970                           $0.09 trillion
1980                           $0.19 trillion
1990                           $0.32 trillion
2000                           $0.47 trillion
2010                           $1.68 trillion
2021                           $3.18 trillion

-                                            1950                           2021
Literacy rate                     18.3%                            78%
Total fertility rate            5.9 children                 2 children
Infant Mortality Rate     182 per 1000              27 per 1000
Life Expectancy               37 Years                       70 Years

Sensex Journey
Year                                 Sensex
August 1982                      216
August 1987                      500
August 1992                      2795
August 1997                      4320
August 2002                      3020
August 2007                      15000
August 2012                      17783
August 2017                      31500
August 2022                      59400

Sensex                                Move
1982 to 2007               increased 70 times
1987 to 2012               increased by 36 times
1992 to 2017               increased 11 times
1997-2022                    increased 14 times

Sectors to invest in the next 25 years?
-Banking sector
-Pharma
-Technology

How much wealth will be earned in 25 years?
(If debt returns and the inflation rate is the same in 25 years)
- If the Sensex is at Rs 5 lakh then the value of Rs 1 lakh will be Rs 9 lakh
- If the Sensex is at Rs 8 lakh then the value of Rs 1 lakh will be Rs 14 lakh
- If the Sensex is at Rs 19 lakh then the value of Rs 1 lakh will be Rs 33 lakh
- Debt returns and inflation rate the same in 25 years

- If the debt returns at 4% then the value of Rs 1 lakh will be Rs 2.16 lakh
- If the debt return at 5% then the value of Rs 1 lakh will be Rs 3.38 lakh
- If the debt return at 6% then the value of Rs 1 lakh will be Rs 4.29 lakh

What will be the asset class condition in the next 25 years?
In the next 25 years,
- Debt return will be equal to inflation
- Gold - hard to guess
- Real estate will not make big money
- Equity is the growth factor for the next 25 years
- Regular investment in equities will make money

Where will investors make money from investing?
The expert suggested keeping small-time money and not investing too much in debt for the long term. He also suggested keeping money for the next 3-5 years in debt. Some investment in debt is right to save capital, he said. Apart from that he also said if you want to make wealth then invest in equity. Investing in equities will create wealth over the long term.