I would like to provide a brief summary of the impact of the virus and how the businesses have rebounded in the last 1 year.
The Indian bull market has continued for a stretch for the last 18 months, after the impact of COVID-19 during February & March 2020 when the world markets including India had fallen suddenly due to the unknown virus.
Post April 2020, with steady inflows into the equity markets, digitalization of the economy, government policies on the corporate tax cut, startup India incentives and with the subsequent launch of PLI (Production Linked Incentive) scheme, Indian markets rebound to new heights. Domestic drug manufacturing has aided in the growth of generic medicine as well as covid vaccination drugs which are also exported to greater numbers across the globe.
With our country being one of the favourite destinations for investment as we have a good demographic dividend and China+1 policy being adopted to shift the manufacturing base from China to emerging market economies including (India, Thailand, Malaysia, Vietnam, Bangladesh, Taiwan, Indonesia) and some of the industries like semiconductor manufacturers, agrochemicals, logistics, packaging and others.
Coming back to October 2021, we have seen a good amount of volatility this month as going forward EARNINGS OF COMPANIES will determine the growth of the equity market as it has already rallied to a good extent (thanks to the inflows by both domestic and international investors community). As the interest rates are lower and with RBI is in an accommodative stance towards working on the growth of the economy, Indian equities continue to look good with a medium to long term perspective.
Hence, stay invested and keep investing regularly through SIP/STP route and more importantly, focus on your GOALS while planning for LONG TERM investments.
For a short-term investment ( 3 to 5 year horizon), you can consider LUMPSUM investment in the asset allocation model which will invest in equity/debt/arbitrage/cash in a single fund which is the BALANCED ADVANTAGE FUND.
Based on your risk profile, investment horizon and liquidity needs, we will continue to identify opportunities in the investment space and suggest funds to add value to your portfolio.
Wishing you a good festival season ahead and stay safe!!
