Top fund managers suggest keeping faith in the Indian growth story, saying investors will be rich in the long run

The fall in stock market prices has spooked investors. However, after falling for six consecutive sessions, the market regained its glory on October 27. but, nifty It is down about 1150 points from its all-time high of 20,200 last month. The biggest question in the minds of investors is whether the market will continue to decline? No one can give a correct answer to this question. Still, Moneycontrol has spoken to India’s top fund managers to ease investors’ woes. Our objective was to know what kind of view investors should have about the stock market and investments. We spoke to top fund managers, especially with new retail investors in mind. Often new retail investors fear falling markets. Many times, out of fear, they sell their stocks at a low price and get cut off from the stock market forever.

India’s performance is good even in tough times

Top fund managers say that all investors need to believe in the growth story of the Indian economy first. Between March and September of this year, there has been a surprising rise in the stock market. The rise of smallcap and midcap shares in particular has surprised people. This too in an environment when the world economy is in various difficulties. Rising interest rates in the US, higher crude oil prices and inflation not being contained despite best efforts are seen as major risks.

India’s principles are strong

Nilesh Surana, Chief Investment Officer (CIO), Mira Asset Investment Managers (India), says that while the global economy is in trouble, things are looking better in India. The growth of Indian economy is good and the profits of companies are also growing well. Investment in housing sector has started again. The bank’s balance sheet looks strong. Activities in the manufacturing sector have increased. Even the rural economy is showing signs of improvement.

Nilesh Surna

After the fall comes recovery

The CIO of a leading mutual fund house said that after bond yields in the US hit a 16-year high, global investors have become wary of investing in emerging markets. Interest rates are expected to remain high for a long time. Fiscal deficits have widened in the global economy, which may lead to economic recession. Due to these reasons, the market price is falling. But, it is only a matter of time. After that the market is sure to recover.

Trading on historical valuations in the market

According to Nilesh Shah, Group President and MD, Kotak Asset Management, investors should keep faith in the Indian growth story. Stock markets fall, but India’s growth continues. He said three things are needed for the market to improve. First, fund flow, second sentiment and finally fundamentals. Fund flows and sentiments tend to change. But, originality takes time to develop and deteriorate. If we look at the earnings story of the companies, we can see a growth of 15-18 percent this quarter. Currently, micro-caps, minicaps and SME stocks are declining, but the broader market is still trading at historic valuations.

Nilesh Shah

Hard times won’t last long

Nippon India Mutual Fund CIO (Equity) Shailesh Raj Bhan said the tough times could continue for another two-three months. He said, the price reform is not expected to last for long. So investors should gradually invest money in the market rather than single investment. Doing so will be very beneficial for long-term investors. Other experts also say that investors should use the opportunity of the decline to increase investments in quality stocks.

Sailesh Raj Bhan

Great returns in the long run if you keep investing

Investing through SIPs has led the Indian market to recover quickly from each downturn in the past three years. Last month, SIP investments crossed Rs 16,000 crore for the first time. Experts say investors should continue investing in shares through SIP. If 12 percent annual return is assumed, investors will get good profit in long term. They will get the benefit of compounding, which will create good wealth in the long run.

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