Is Winter Coming?

2023 is poised to be a year filled with ups and downs for the average Indian millennial in terms of income and financial certainty.

- Kurian Jose

While recession has not hit home yet, the post pandemic professional does not want to be caught off guard if, and when, the reverberations are felt. It is also the generation that is yet to enter the wealth accumulation phase, unlike Gen X. In such a scenario, it can seem tempting to opt for liquidity in hand and push back on investments that demand long gestation.

The Need for Discipline

A Only, the reverse stands true – as the gap between primary retirement and life span keeps increasing, staying consistent can ensure an adequate corpus for future recessions. Continuing to invest rather than holding on to higher cash liquidity is especially important in the case of long-term investment products such as NPS; they offer the option of linkage to equity markets and deliver optimum returns when:

• Investors start small but early to experience the impact of compounding

• One remains invested through multiple cycles