Invest in Future, Stay Disciplined to Ride Market Turmoil: NSE Advisor Pathak
Investing in the future and maintaining disciplined portfolio allocation are key strategies for individuals to navigate potential turmoil in financial markets, according to Shailesh K Pathak, Senior Advisor - Policy at the National Stock Exchange of India (NSE). He made these remarks while addressing a financial literacy event organized by the NSE and the India Habitat Centre on Thursday.
Emphasizing Portfolio Allocation and Financial Literacy
Pathak stressed that a well-structured investment approach can help mitigate risks during market fluctuations. "All I would say is invest in your future and portfolio allocation will get you through all the possible turmoil in this world," he stated. He highlighted the importance of informed decision-making, which is increasingly facilitated by technology-driven platforms that provide broader access to financial instruments.
NSE's Pioneering Role in Screen-Based Trading
Reflecting on the evolution of stock exchanges, Pathak noted that the NSE was the first in the world to implement completely screen-based trading for shares and other financial instruments. "The screen does not bother whether you are a man or a woman. It does not matter whether you are 60 years old or 30 years old," he said, underscoring the inclusivity and accessibility of modern trading systems.
Market Growth and Investment Recommendations
Pathak provided insights into the significant growth of the NSE, which has risen from around 1,000 in 1996 to between 24,000 and 25,000 today. He advised investors to approach the market thoughtfully, using the slogan: "National stock exchanges -- soch kar, samajh kar, invest kar" (think, understand, invest).
He recommended the NSE app for domestic investments and the recently launched NSE iX Global Access app for international opportunities, which has already garnered approximately 10,000 sign-ups. Sharing a personal anecdote, Pathak revealed that he had a portfolio of 14-15 shares in 1990 but sold them upon joining the government, noting that holding onto them would have resulted in a substantial portfolio today.
India's Stable Economic Outlook
In the same event, Shamika Ravi, Member of the Economic Advisory Council to the Prime Minister, reinforced confidence in India's economic resilience. She told ANI that India's growth remains strong and stable despite global uncertainties, with inflation consistently within the target range set by the Reserve Bank of India.
"Our growth is not just high but more importantly stable, with inflation which has remained within the threshold of what the RBI sets for inflation targeting," Ravi said. She added that there is no reason for panic, even as India monitors developments in regions like West Asia and the ongoing Russia-Ukraine conflict.
This comprehensive discussion at the financial literacy event underscores the critical role of disciplined investing and financial education in building a secure financial future, particularly in times of market volatility.
