The current volatility in the stock markets along with geopolitical tensions across the world has left all investors nervous. When the mood of investors is upbeat, the market is full of noise. First Covid and then the war between Ukraine and Russia has put the world under inflationary pressure. However, this is not going to continue for a lifetime as at one point there will be a settlement and the world will return to normalcy.

All investors, big or small, are wondering what will happen to their life savings, which they have invested for a better future or for their goal-based objectives. We see a boil in the debt markets after the US Federal Reserve System or Fed raised rates by 75 bps. Earlier, RBI had increased the rates by 50 bps. Central banks around the world are watching inflation very closely and will try to reduce it at the expense of growth. Hence, we expect further rates to increase by at least 50-75bps more in India, shortly. But with RBI having many shells in its bag, we can see what measures it will take to control inflation and challenge growth in the economy.

As a qualified CFP + CFA, we advise our clients to follow a very balanced strategy going forward, with a horizon time frame of 2 to 3 years in equity markets, debt funds like floating funds or pure liquids. in the form of a systematic transfer scheme from Funds for equity funds, especially mid and small cap funds, as we expect these categories to bounce back much faster than others. Investors should consult with AMFI registered mutual fund distributors with clear time-frame and goal-based planning, who can handle them in such scenarios better than others. The strategy can be risk profiling of individuals and cash flow based. But we feel that if one invests in the current valuation of the market, one can earn money going forward.

Opinions are personal: author , emotional motive
is a mutual fund distributor

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