Where to Invest in 2023

The Indian economy remains sturdy but high prices are challenging investor earnings. Here's how one can beat inflation in 2023.

- By AVNEET KAUR

EVEN AS THE STORM-TOSSED 2022 comes to an end, the global economic environment remains challenging. The war in Ukraine has led to shortage of food, staples and energy. Though prices of food, energy and other commodities have eased moderately of late, high inflation is affecting economies across the world. IMF has projected that more than a third of the global economy will experience contraction this year or next year. However, the Indian economy has been resilient, drawing strength from domestic fundamentals. “Our financial system remains robust and stable. India is widely seen as a bright spot in an otherwise gloomy world,” says Shaktikanta Das, governor, Reserve Bank of India. But he says the battle against inflation is not over. Thus, it is important to invest in products that can deliver higher than the inflation rate.

In 2022, equity as well as debt markets were volatile, both in India and abroad. The year 2023 is unlikely to be different as economic problems continue to trouble all major economies. The question is, how and where should one invest in such a chaotic environment? If equities remain under pressure, can one opt for traditional or alternative asset classes? Here’s what one can expect from different asset classes in 2023.