New Delhi Due to the spread of Coronavirus infection in the country, the Indian stock markets have seen a huge decline in the recent few weeks. However, according to experts, this is the time to invest in equity for a long time through SIP. Experts believe that the stocks of healthcare and telecom companies will outperform in the current circumstances. According to Sandeep Sikka, CEO of Nippon India Mutual Fund, investors should invest in exchange traded funds (ETFs) and index funds as these funds have a structure that has a certain liquidity.
According to Kanwar Vivek, CEO of Yes AMC, investors are advised to continue investing in the market. He said that if the investors have money then they should invest in the long term. It is noteworthy that the market sentiment has weakened due to the outbreak of Novel Coronavirus and a sharp reduction in the prices of crude oil, and this has led to huge volatility in the equity markets. This month, the BSE Sensitive Index, based on 30 stocks, has registered a 12 per cent decline so far. The Sensex has fallen from 34,000 points to around 29,000.
According to Vivek, the current market conditions are very attractive to long-term investors and this is the right time to invest in long-term equities.
Expressing similar views, Ashika Wealth Advisors CEO and co-founder Amit Jain said that the worse the market performance, the greater the chances of better returns in the medium to long term. He said that new investors should invest 40 per cent in mutual funds, which can give about seven-eight per cent returns. He said that the remaining 60 percent of the money should be invested in multi-asset and mid-cap schemes.