India’s Defence Growth, Wealth Strategies, 8th Pay Commission Insights, and Key News Updates

Welcome to The Alternate Edge!

We’re excited to bring you the second edition of The Alternate Edge—your go-to guide for navigating the ever-evolving world of alternate investments.

At InCred Money, our mission is to keep you informed and empowered as you explore innovative ways to diversify your portfolio and achieve your financial aspirations. With each edition, we bring you expert insights, actionable strategies, and curated opportunities designed to help you make confident, well-informed investment decisions.

What’s Inside This Edition?

• India’s Defence Transformation: Explore how India is emerging as a global tech leader, with key insights into the growth of its defence sector.
• Investor Insights: Discover the go-to strategies of investors working on their finances and how they are diversifying portfolios.
• 8th Pay Commission Insights: Understand the anticipated changes to salaries, pensions, and allowances, and their impact on India’s economy.
• News In Focus: Stay updated on the latest financial highlights, including market trends, trade deficit updates, and equity fund developments.

Let’s continue this journey toward smarter, more strategic investing together.

India’s Defence Transformation: From Importer to Innovator

Newsletter by Vijay Kuppa, CEO, InCred Money

• Defence Sector Growth: Nifty Defence Index achieves 5-year CAGR of 50%, surpassing Nifty 50's 15%.
• Policy Push: Initiatives like DAP 2020, defence corridors, and FDI reforms boost domestic manufacturing.
• Export Boom: Defence exports rise from ?15 billion (FY17) to ?210 billion (FY24), targeting ?500 billion by FY29.
• Investment Outlook: Defence stocks outperform, but risks include policy shifts, high valuations, and revenue uncertainties.

Explore how India is charting its path as a global tech leader, transforming challenges into opportunities. ?? Read Here

What’s Your Go-To Wealth-Building Strategy?

We recently conducted a survey among investors and individuals actively working on their finances to understand their preferred strategies for growing wealth. A resounding 45% of participants chose Mutual Funds as their go-to investment option. This highlights the growing trust in diversified, professionally managed portfolios as a way to achieve financial goals.

Coming in second, 32% of respondents favored the Stock Markets, reflecting a preference for direct equity investments and a hands-on approach to wealth creation.

Real Estate took third place with 15%, showcasing its enduring appeal for long-term asset growth, even in today’s evolving investment landscape. Meanwhile, 8% opted for Fixed Deposits, a trusted choice for building a safety net and managing emergency funds, rather than purely wealth creation.

These findings highlight a growing trend among investors—an emphasis on diversifying portfolios and balancing growth potential with financial security.

Source: Internal Research

Understanding the 8th Pay Commission: Implications for India

The Indian government has approved the formation of the 8th Pay Commission, tasked with reviewing and recommending changes to the salaries, pensions, and allowances of central government employees and pensioners.?

Key Highlights:

• Salary Enhancements: Aiming to uplift the financial well-being of over 10 million individuals, including 5 million central government employees and 6 million pensioners.
• Improved Pensions and Allowances: Strengthened post-retirement benefits and enhanced allowances for housing, travel, and other necessities.
• Economic Impact: While higher salaries are expected to boost consumption, there are concerns about potential inflationary pressures and increased fiscal strain on the government's budget.

?? For a more detailed analysis, read the article here.

News In Focus

Stay updated with key developments that shaped the financial world this week:

1. The Indian rupee reached an all-time low of 86.63 against the US dollar due to a stronger dollar and various global factors. Read Here

2. India’s merchandise trade deficit fell to a three-month low of $21.9 billion in December, coming in sharply lower than a revised figure of $31.8 billion for the previous month. Read Here

3. Redemptions from equity funds increase by 40% to ?4,645 billion in 2024. Read Here

4. Asset management companies launched 239 new fund offerings (NFOs) mobilising ?1.18 trillion in 2024, with sectoral or thematic equity funds emerging as the top choice of investors. Read Here

5. India to remain fastest-growing large economy in FY26, FY27: World Bank. Read Here

Your Alternate Financial Journey Starts Here

Whether you’re just starting or looking to take your investments to the next level, InCred Money is here to guide you at every step.

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Disclaimer:

The information provided in this newsletter is for informational purposes only and does not constitute financial, investment, or legal advice. Readers are advised to consult with their financial advisors or conduct independent research before making any investment decisions.