India Remains a Strong Investment Destination Amidst Global Uncertainties. Experts advise investors to stick to their financial plans and diversify their portfolios.
Invest: Amidst global geopolitical instability and market volatility, India is emerging as a promising and sustainable investment destination. Economic experts believe India's market structure and policy framework are highly promising for long-term investors. Instead of panicking, investors should remain focused on their financial goals and disciplined investment strategies.
Investment Opportunities in India Persist
Market experts suggest that in the current scenario, investors should deploy their capital across diversified instruments such as equity, bonds, gold, and company fixed deposits. Amar Ranu, Head (Investment Products), Anand Rathi Shares and Stock Brokers, stated that India's fiscal and monetary policy environment is favorable for investment. Disciplined investing through schemes like SIP (Systematic Investment Plan) and STP (Systematic Transfer Plan) is recommended.
Equity Return Volatility Observed
Recent geopolitical events and US tariff announcements have caused sharp fluctuations in the stock market. This volatility has impacted the returns of mutual funds, particularly equity-based funds. However, market dips are being considered as long-term buying opportunities.
Diversification is a Smart Move
Sanjay Bembalkar, Head of Equity at Union AMC, explained that despite the uncertain global environment, India remains attractive for investors. He suggests that investors should maintain exposure in debt, gold, and real assets alongside equity.
Traditional FDs Fail to Deliver Inflation-Beating Returns
According to Vineet Bolinjkar of Ventura Securities, traditional fixed deposits are suitable for capital preservation but fail to beat long-term inflation. He advises investors to explore modern financial tools like floating-rate instruments and target maturity funds.
Emergency Funds and Risk Mitigation are Crucial
Experts emphasize the importance of maintaining a liquidity buffer and diversification while managing portfolios. Avoiding sudden redemptions or early withdrawals during uncertain times is crucial. Continuing SIP investments in mutual funds is recommended.
Gold, Silver, and REITs/InvITs Can Be Smart Options
Precious metals like gold and silver are traditionally considered hedges against inflation and currency risk. Experts believe that 20-30% of a portfolio can be allocated to such safe haven assets. Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) offer better diversification options for steady income.
Expert Take: Now is a Good Time to Invest
According to Amar Ranu, this is a good time for new investors to enter the market. "Don't avoid volatility; view it as a smart investment opportunity. Maintain discipline through SIP and STP and adopt a long-term perspective," he advised.
