The market is at its lowest, both the indices, Sensex and Nifty, are currently 28% low than what they were in January and February, Kudos to Corona situation all over the world. 

With the situation getting worst day by day, one question that the investors are asking it loud is “Is it a good time to invest”. 

The simplest answer to this is “are you in a situation to invest”. Have you analyzed your cash flow in this time of crisis, is it going to get affected? If your asset allocation is good, your emergency fund can cover your expenses for 6 months in the worst condition, and you are confident of not losing your cash flow, then you surely can invest.

For fund managers, this time is the sale time 

As a fund manager, you need to build the trust of the investor in the Indian market. As of now every company listed on the Nifty and Sensex is trading at the much low values. But there are some companies which you can say flag bearers of making India an economic powerhouse. An example is TCS and Infosys which employ tens of thousands of Indians and have put India on the global map are trading at close to their year-end lows.

These companies have survived much such crisis and have come out with flying colors, so we know this time to these companies will come out with flying colors. 

Some companies have no other reason to face this downfall than this pandemic. So, once this pandemic gets over the company will bounce back to being normal. As an analytic fund manager, you must have analyzed that the impact of this pandemic is likely to be short term (up to 2 years) rather than negative in the long run.

Also, these well-established companies will use this opportunity to buy shares of good companies at lower rather than higher levels, given a choice.  

If you are a believer in India’s growth story, despite this pandemic, then this is a time to continue investing if you have the income to support investments. Those of you who stay invested now will reap the benefits in the future. 

The investment of Facebook in Jio is an example of how the world trusts in the Indian economy. Now Facebook holds a 9.9% share of Jio. 

Investment in equity is for things you need a decade later

We don’t encourage opportunistic buying during a market fall, with the hope of making a quick buck. That’s a dangerous game to play. However, for those willing to think and stick to long term plans (10 years or more), now is a rare opportunity to give your investments a boost they get only once in a decade.

Happy Investing!

Mutual Fund investment is subject to market risk, please read offer related document carefully before investing.