Is it the Right Time to Invest in Equity Mutual Funds?
Wednesday, Sep 09, 2020
'Is it the right time to invest in equity funds?'
This is perhaps the most asked question today.
So, to help you with this, we reached out to someone who has seen several stock market cycles in his lifetime...and has navigated them skillfully.
We are of course talking about...
Atul Kumar, the Head - Equity Funds at Quantum Mutual fund.
According to Atul, Global economic recovery is far away.
In India, although, economic recovery continues at a gradual pace, market valuations have come back to pre Covid-19 impact levels.
In fact the valuation looks close to 5 year high.
However, it is only a handful of stocks which have contributed to the overall rally.
Earnings of most companies are likely to be disappointing in FY21 as lockdown has affected most. Clearly indicating that there are still stocks/sectors that need to do well.
Which means that the opportunity is not lost.
Atul further adds, good business environment based on stable policies is what the country needs.
Now get the long-term vision
We really don't know what direction markets are going in, in the near future.
An overvalued market could scale to new highs or may further correct even after a sharp sell. We don't know. Nobody knows. (and if they claim they know, let's just say it's a coin toss at best).
What is important to note is that investing in equity mutual funds for long term has a potential to generate long term risk adjusted returns.
Especially for Indian economy; where the economy is dependent on domestic consumption and thus insulated from any global problems over the long term.
We understand economic growth could face pressure in the near term, but relative fast recovery in the rural economy and measures to ease liquidity are likely to stimulate growth.
What should Investors do? What should YOU do?
Keep clam and keep investing.
There is really no better recommendation.
Start by simply staggering your investments by investing through SIPs. This will not only mitigate risk of market volatility but also be an advantage if we witness correction.
Start investing now.
Editor's Note: In our view, this is the right time to invest. To let us help you know the right fund for your goals, do call us on 1800-22-3863 or drop us a line at CustomerCare@QuantumAMC.com Or give us a missed call at +91-22-68293807 and we will call you back.
Disclaimer, Statutory Details & Risk Factors:
The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.
Mutual fund investments are subject to market risks read all scheme related documents carefully.
Please visit – www.QuantumAMC.com to read scheme specific risk factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme(s) may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-) Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.