‘Stay calm and invested’: Mutual fund experts advise investors during Covid-19
The coronavirus pandemic has shaken up the investment scenario in the country. Given the current interest rate scenario, investors are largely focusing on fixed income categories.Updated: Aug 13, 2020 11:10 IST
The coronavirus pandemic has shaken up the investment scenario in the country. Given the current interest rate scenario, investors are largely focusing on fixed income categories.
Many experts, especially in the mutual funds sector, advise that the investors shouldn’t panic and stay focused and invested in the long run.
“As investors, one needs to understand that ups and downs are part of the investing cycle and that the long term investments always help yield better returns. So stay calm and stay invested. Also hope that all of this ends soon and life bounces back to normalcy,” said Gopal Menon, CEO & COO, Axis MF.
Menon also said that economic activities are now slowly picking up in the country and advised the mutual fund companies “to focus on building quality portfolio and build good risk adjusted returns to investors”.
Raghav Iyengar, Chief Business Officer at Axis MF, said that India investors have become smart. “I have an interesting observation, when the markets actually fall, we get more purchases. This is contrary to how it used to be 10 to 15 years back, where if the markets fell the retail investors were the first ones to panic,” he said.
Recently, data with the Association of Mutual Funds in India (Amfi) showed that barring credit risk funds, all the individual categories that invest in fixed-income securities or debt funds saw inflows.