CEO Speak June 2023

In these times when we see all-time highs in the equity markets being reached and breached again and again, I see many investors wonder “This may not be the right time for me to get into the market at such high levels”.

Well, having spent so many years in this industry and with significant historical data points to rely on, I would tell all our investors that “Markets break a barrier only to reach a new high at some point”.

We have witnessed record foreign investments (FPIs / FIIs), strong corporate results, inflation control measures and other macro-economic indicators which makes our economy investment conducive. Most indicators are pointing towards a good growth path that our country is on. Global economic and geopolitical challenges do pose a threat, but our domestic consumption and markets have shown resilience and growth in the recent past, despite the adverse global conditions.

The 4 Ws of investing:

• Why? You invest because you have a financial goal (short or long) to achieve
• Where? Where you invest depends on your risk appetite, life cycle etc.- equity, debt, FDs, real estate, gold etc
• What? Choose and allocate your funds in different asset classes based on your financial goal and risk appetite
• When? – Whenever you are ready. Start investing from a young age, it gives you the advantage of time in the markets. However, investing in the market is never too late, the earlier you start the better it to be financially secure

Should you time the markets? Will this be a good entry point?

Choose your investments with the knowledge and understanding of the financial instrument you are getting into. And if you have chosen equity mutual funds or direct stocks basis some long-term financial goal, you must stay invested for the period that you had intended to, originally.

We believe in the power of wealth creation through Systematic Investment Plans (SIPs), and you must continue with your SIPs irrespective of the market cycles. And if you have not started an SIP, and if you have a long-term financial goal like building a corpus for retirement or a child’s education, you can start investing through SIPs irrespective of the market cycle. SIPs work on the principle of rupee cost averaging; your risk is averaged out over a long term and through market ups and downs. Hence “timing” the markets becomes irrelevant. And because you spend a long “time” in the markets through the SIP route, it helps you create wealth as no other financial instrument has given better returns over a horizon of 7-10 years or longer.

Don’t try to time the market, instead, spend “time” in the market.

Happy Investing and Stay Invested!

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