{"id":291163,"date":"2022-02-25T18:22:48","date_gmt":"2022-02-25T12:52:48","guid":{"rendered":"https:\/\/apnlive.com\/?p=291163"},"modified":"2022-02-25T18:23:53","modified_gmt":"2022-02-25T12:53:53","slug":"passive-investing-ideas-for-2022","status":"publish","type":"post","link":"https:\/\/apnlive.com\/blog\/passive-investing-ideas-for-2022\/","title":{"rendered":"Passive Investing Ideas for 2022"},"content":{"rendered":"\n

2022 is a transition year globally. The Covid-19 epidemic besieged 2020 and 2021, and the central banks of most countries left money taps open with some of the lowest interest rates. The cheap cost of credit started a hitherto unseen bull run in global equities and all other asset classes. Global equities reached stratospheric levels, and Indian equities were no exception. Retail investors in India participated in equities in a big way and earned huge returns. <\/p>\n\n\n\n

2022 will be a year of moderation. The Federal Reserve has started quantitative tightening, and interest rates are also expected to rise, beginning March 2022. The RBI is also likely to raise interest rates towards the latter half of this year. But in every downturn, there is a great opportunity. The consolidation in equities gives a splendid opportunity for stock picking and value investment.<\/p>\n\n\n\n

Investing in the stock market<\/a> remains the best bet to beat inflation in the medium-to-long term. As most commodities have appreciated greatly, inflation has been running unchecked. Inflation is also one of the triggers for the increasing interest rates. Investing in Indian stock markets and equities will produce returns in the medium-to-long term that will outpace inflation. The Indian economy is also expected to grow at an average GDP rate exceeding 6.5% p.a for the next 3-4 years. This will provide an impetus for equity markets to grow further.<\/li><\/ul>\n\n\n\n
- You can invest more in large-cap equities as they will be more resilient during a period of consolidation in stock markets. Midcap and small-cap equities may be more volatile. Index funds, too, offer an opportunity for doing passive investing.<\/li><\/ul>\n\n\n\n
  - Indian equities are predominantly based in traditional industries, including banking, financial services, infrastructure, capital goods manufacturing, FMCG and consumer goods. But the sunrise industries in developed countries like the US include electric vehicles, artificial intelligence, big data, robotics, green and other renewable energy sources, blockchain, cybersecurity, cloud computing, industrial automation, data centre, e-commerce and tech platforms. These industries are capable of a massive ramp-up in scale. You could invest in global companies to obtain geographical diversification to unrelated sectors by investing in international equity funds.<\/li><\/ul>\n\n\n\n
    - Sectors like chemicals and commodities in India could see some consolidation. Most of the stocks in these sectors are richly valued. Banking and Financial Services and IT services show a lot of traction and potential for appreciation in 2022. The IT sector, with its innovations, has the potential to increase further, and stocks in this sector could be purchased on dips.<\/li><\/ul>\n\n\n\n
      - The key precept of equity investing is buying systematically to bring down the average cost of investing and remaining invested for the medium-to-long term.<\/li><\/ul>\n\n\n\n
        As interest rates rise, you could consider online investing in liquidity funds and select bond funds to increase your portfolio yield and get some asset class diversification in the portfolio. <\/li>
        If you have a propensity for more risk, commodities like silver offer investment opportunities. Silver, a metal used in industrial production, can potentially appreciate more and generate profits. <\/li><\/ul>\n\n\n\n
        An increase in passive investment strategies is a sign of equity markets growing and maturing. Passive investing also enables you to reduce the costs of trading and investing. Staying invested in equity markets<\/a> will help you compound your returns and grow your wealth over the medium-to-long term. This facilitates better financial planning for the future.<\/p>\n","protected":false},"excerpt":{"rendered":"
        The Covid-19 epidemic besieged 2020 and 2021, and the central banks of most countries left money taps open with some of the lowest interest rates. The cheap cost of credit started a hitherto unseen bull run in global equities and all other asset classes. Global equities reached stratospheric levels, and Indian equities were no exception.<\/p>\n","protected":false},"author":1,"featured_media":101290,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[79031],"tags":[122987,122988,122986,122989],"yst_prominent_words":[60929,82372,32667,3887,7778,7781,55491,5816,29978,29793,27803],"ppma_author":[140544],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/d2r2ijn7njrktv.cloudfront.net\/apnlive\/uploads\/2020\/10\/27165613\/money-investment.jpg","jetpack_sharing_enabled":true,"authors":[{"term_id":140544,"user_id":1,"is_guest":0,"slug":"chief7102","display_name":"APN","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/96c688e9152b5fa0c2a80824f906fea8?s=96&r=g"}],"_links":{"self":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/posts\/291163"}],"collection":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/comments?post=291163"}],"version-history":[{"count":0,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/posts\/291163\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/media\/101290"}],"wp:attachment":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/media?parent=291163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/categories?post=291163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/tags?post=291163"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=291163"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/ppma_author?post=291163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}