As we step into the new Vikram Samvat 2081, investment opportunities abound this Diwali. In a recent conversation with Avni Raja, financial expert Feroze Azeez shared strategies for investors navigating the current market landscape. Here are some highlights from their insightful chat, perfect for lighting up your portfolio this festive season.
Market Correction: Nothing to Worry About The recent market correction has left investors concerned, but Azeez reassures that corrections are typical, occurring every nine months. “The market has a habit of correcting every nine months,” he states, adding that there’s no need for alarm. For those investing in Samvat 2081, staying calm during these fluctuations can lead to long-term gains.
Likelihood of a Deeper Correction? Addressing fears of a deeper correction, Azeez doesn’t see this as likely. “A fall over 20% would be a deeper correction, but it’s highly unlikely,” he says. He also notes that Foreign Institutional Investor (FII) selling might ease after the U.S. elections, which should stabilize market movements.
Advice for Mutual Fund Investors For mutual fund investors, Azeez calls the current correction a “festive discount,” and says it’s the best value investors have seen in years. He recommends larger allocations now, while small and midcap investments should be spread out in a staggered approach. This can help manage risk while taking advantage of the current market dips.
Sectoral vs. Thematic Funds Sectoral funds can offer returns, but they require precise timing, says Azeez. Unless investors are confident in their timing, thematic funds, which focus on long-term growth themes, may offer more stability and relevance to broader market trends.
Young Investors and Asset Allocation For young investors, Azeez advises on the importance of planning and restraint. High risks do not guarantee high returns, he warns. Aligning investments with financial goals and knowing when to stop taking on extra risk are crucial for creating a balanced and resilient portfolio in Samvat 2081.
With these insights from Feroze Azeez, investors can enter the new Samvat year with greater confidence and a clear strategy to make the most of Diwali’s festive spirit!