“The new version of covid that is spreading rapidly in South Africa and other African countries. There was a warning by the WHO which has created fear in the global markets. Second, the rate hike expected by the Fed is expected to happen sooner. “The news has brought uncertainty to the market. Global investors are at risk of economic recovery and rise in cost of capital,” says Saurabh Gupta, fund manager, Quantum Mutual Fund.
Equity markets have lost nearly 2% amid the emergence of a new, highly mutated Covid-19 variant. The European Union has announced a temporary ban on flights from South Africa and some EU countries are running a complete shutdown. New mutants of the virus are expected to derail the global economy. However, fund managers feel that investors should not hold on to their investments at this time.
“None of the things—Covid and rising rates—were completely unforeseen as risks were not completely eliminated. For long-term investors, if the market corrects further, an opportunity to invest For SIP investors, they should continue with their SIP. This is the best strategy. The outlook for Indian equity market is positive in 3-5 years horizon. Take this time to add more to your portfolio, Sorabh Gupta says.
Experts also believe that for the last one month, there has been a unilateral bullish pressure in the stock market. FIIs are also selling in October and November. Chintan Hariya, Head – Product Development & Strategy, ICICI Prudential AMC, says that “Strengthening dollar index signals a riskier environment, rising inflation print across the US and Europe, possibility of a hike in interest rates by the US Fed all There are factors which are weighing on the market. East India, other Asian markets have already witnessed selloff. After the one-sided rally, we believe the market is likely to see an element of consolidation. Investors with their SIPs should continue and consider hybrid strategies like multiple assets and balanced leverage to make the most of volatile times.”