The Mutual Fund Show: What To Learn From The Year Gone By About Investing In Samvat 2078

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As a bountiful Samvat 2077 draws to a close, a key advice is to stay invested and take advantage of the inevitable corrections that the markets will face.

“Equities are for optimists. If one stays invested and believes in human ingenuity, markets will deliver,” Aashish Somaiyaa, chief executive officer at White Oak Capital Management, said on the special Diwali edition of BloombergQuint’s The Mutual Fund Show. “One has to stay invested, but be judicious and see where growth is coming in. Last few days have been a sea of red, but corrections are inevitable. One will be tempted to bail out many times in the next Samvat but one should stick by for returns.”

Kalpen Parekh, CEO at DSP Mutual Fund, agreed. “Markets fluctuate. One must take advantage of them, instead of getting penalised by them. If we know the drivers and turning points, we can take advantage of them,” he said on the same show.

“Investing in markets is not a game of T20 cricket, but rather a Test match. It’s very important to survive. And in investing, what helps is diversification across asset classes. That’s been the big learning,” he said. “Stay away from watching prices every day.”

The Biggest Surprise

For Parekh, the biggest surprise in Samvat 2077 was the “massive resilience” that corporate India displayed. “The way we saw companies realigning business models, cutting expenses and doing whatever it takes to continue to grow, was great. Investors at large didn’t lose their goal and kept faith in their asset classes.”

According to Somaiyaa, it was the boom in retail participation.

“Ironically, those who haven’t ever been in the markets did well compared to those who have been here for two-three cycles or even decades,” he said. “For them, some of the past bad experiences were of long-drawn bear cycles. If you’re really informed or coloured by some of your past experiences, I think that worked out to being a bit of a disadvantage.”

Besides, acceleration in digital adoption with respect to capital markets and otherwise was significant, Somaiyaa said. “A lot of these things have changed forever. We aren’t going back to pre-Covid versions of them. They also got accelerated due to the pandemic.”

Watch The Diwali Special Mutual Fund Show here:

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