We started 2022 with peak of equity market followed by Ukraine war, historical high US inflation rate, hikes in interest rate by central Banks and oil price volatility. The market reacted adversely to global uncertainties. The latest uncertainty is the bizarre China Covid 19 policy.

But India has handled Covid effectively, managed macro-economic fundamentals well amidst uncertainties. The inflation has started moderating, is below 6% now and likely to go down further as per RBI’s assessment. As per IMF, India is the highest GDP growing economy in the world today. The credit growth has picked up and non food credit growth is more than 17% YTD. Banks are looking much healthier due to lower NPAs thanks to IBC (Insolvency and Bankruptcy Code).Manufacturing PMI(Index) is above 55 indicating an expanding economy. The Govt spending on infrastructure has increased and GATI shakti is likely to bring much needed coordination between various agencies to expedite implementation of various infra projects. Nifty corrected 17% from its peak during the year but has now recovered.

India has achieved success in spreading digital adoption. The e payments accounts for more than 40% of the global e payments. But the flip side is the increasing cyber frauds. The fraudsters are adopting innovative ways to trap the gullible citizens. Many senior citizens are losing their hard earned money due to cyber frauds. Cyber security awareness is the need of the hour.

There is a record number of students visiting abroad for higher education. The younger generation are highly ambitious and impatient to grab the emerging opportunities. The new start up culture is building up and there are more than 100 unicorns(Valuation $1 bn or more)  in the country now. The Gen Z (25-40 years) is going to inherit the greatest  intergenerational wealth transfer in India  in the coming days. Financial literacy is badly needed for them to sensitize them on the benefits of delayed gratification vis a vis instant pleasure through splurging.

The nuclear families and relocation of children to different cities in India and abroad has left many senior citizens at home to fend for themselves. Many lonely senior citizens are targets of cheating and crime. Seniors living societies with assisted common services are the need of the hour. 

Covid 19 has brought many life style changes. The culture of WFH (Work from Home) got wider acceptance. The health awareness has increased across age groups. The death and suffering of near and dear ones have made many aware of the false ego arising out of wealth, position and power. It has brought home the point that we can manage to live with less by making some life style adjustment.

At the cost of repetition, we reiterate that setting financial goals, assessing risk appetite, deciding proper asset allocation, periodic review of portfolio is key to financial freedom.

We would go a little further beyond achievement of financial freedom and advocate financial life planning to achieve peace and happiness in life. The key elements to this are; nurturing and maintaining trusting relationships, developing creative hobbies, aiming at realistic  aspirations, supporting charity for the right causes, adopting appropriate spiritual paths as per one’s belief , promoting cleanliness, spreading awareness on climate change and protecting the environment.

We wish you and your family a happy, healthy and digital secure year ahead.