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May not be the Best, But Good Time to Invest in Equity?

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 “You miss 100 percent of the shots you don't take." Wayne Gretzky, NHL Hall of Famer 

Markets are down by over 8% from their peaks. Many reasons can be attributed to that like geo-political & economical concerns, domestic political/social events, inflation, interest rates, weather etc.

Are these concerns over or are they deepening further. Honestly no one can answer this question, you can only guesstimate them based on your experience and understanding. Israel has retaliated to Iran’s attack, how is Iran going to reply this? How the US economic policies will shape up after elections that are just a couple of weeks away.

Domestically too train incidents over last couple of months and bomb hoax in flights over two weeks now, rising insurgency post J&K elections, bomb explosion in Delhi this week definitely concerns us. And kind of political slugfest we are witnessing now-a-days, don’t comfort us of a good future at times. FIIs also withdrew 1.07 lakhs crores over last 30 days from Indian markets.

Is the picture so gloomy – Not Really. Domestic funds have pumped in 1.08 lakhs crores in these 30 days against the FIIs continuous withdrawals. On the foreign policy front – India & China agreed to most crucial patrolling areas, our PM met the Chinese Premier after 5 years. And India today is seen as the most friendly nation who can talk to Russia & Ukraine or Israel & Iran/Palestine at the same time. Even US has started saying that its only India who can help the world settle these conflicts.

Economically also, all agencies in the world are in unanimity that India is the fastest growing economy in the world and is expected to grow over 7% for years to come. Corporate profits too, if not extraordinary in general, are quite good. This year rain has been a mixed bag benefitting most parts of the country. And plush liquidity still available with mutual funds and domestic investors both – retail & institutional will keep the positive sentiments about the market alive. Even RBI may surprise you with interest rate cut in December. The best thing is that even retail investors understand such corrections are temporary and growth is permanent.

What’s there for you – Markets are down by over 8% from their recent peaks. Will market bounce back from here – we will never have an answer to that. But what we feel at InvestmentMitra is these are good levels and the money that you had kept in equity savings or BAF or multi asset fund or in banks to be invested for long term, you should start investing in equity now. May be around 40% of your long term funds you should invest at present levels and maintain some liquidity.

Talk to your InvestmentMitra to review your portfolios and current financial situation to take decision accordingly. Or you may whatsapp your query to 9958447700, we will understand your needs and suggest you investments accordingly.

Thank you.

Happy Investing!

Team InvestmentMitra

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