Trump, RBI and India's Budget: A triple whammy for investors in 2025
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The strong equity performance for the past few years has resulted in greater equity investments by retail investors, improved investor sentiment, deeper penetration of mutual funds and SIPs, outperformance by mid and smallcap stocks and funds, reinforcement of faith in the strength, vibrancy and resilience of the Indian economy, and a higher degree of confidence in markets and their potential. It has also given rise to unrealistic expectations about the magnitude and timing of equity returns in the short run. The economy has been slowing down in patches for some time and FPIs have been selling relentlessly, but the continued retail inflows and the faith in the Indian economy have eclipsed the underlying ground realities. In the last few weeks, equities have corrected sharply, personal portfolios are bleeding and there is a question mark now whether to hold, buy or sell. TRUMP There are multiple sources of uncertainties. The US remains the...