Cash is king is a very often used expression that refers to the importance of cash flow in the overall fiscal health of an individual, business or even economy.

If you ask us what is the one asset that I would love to hold today, my answer would be CASH. Yes I know cash does not give any return and losses it value to inflation every year, yet I would still prefer to have it today. Simply because this is one asset class that will allow me to buy all other asset classes that are available at bargain prices today.
Cash is king because the availability of cash enables the investor to avoid two pitfalls:

  • Selling what’s cheap so you can buy what’s cheaper.
  • Not having enough cash to be able to take advantage of compelling investments opportunity that market throws from time to time

With fear and panic gripping the markets, those with cash will gain immensely by picking bluest of blue chip stocks available at heavily discounted prices that the Indian equity market has to offer today. If you use your cash wisely, the odds are very high that in a couple of years from now you’ll be sitting on a handsome profit.
In todays time, when liquidity crisis has engulfed economies the world over, CASH has become the most sought after asset by economies the world over. Even corporates and individuals are yearning for cash.
Last six months or even last one year was probably the time to sit on cash but today is the time to invest with your full might, especially in the Indian equity market. Unfortunately, only those who have cash can take advantage of this wonderful opportunity.
For investors in India, the time to invest your hard earned cash has come.
This Diwali the biggest discount sale is not being offered at Big Bazaar or your local kirana shop but by the Indian Equity market.
So go shopping, but shop wisely.
Happy Investing!!! to all my Indian brethrens.
(Mr. Nirav Panchmatia is a Financial Planner practicing under his firm “AUM Financial Advisors”. He is a Chartered Accountant (CA) & MBA Finance from Narsee Monjee, Mumbai and has worked for the past 8 years in leading financial institutions like Citigroup (Investment Banking), ICICI (SR. Manager – Subsidiary Business) & IRIS (Analyst) etc.

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