Valuations & earnings will take precedence soon says Feroze Azeez of Anand Rathi Wealth
stock market has been quite volatile following the poll verdict. Many investors are panicking and unsure about their investments. ETMarkets spoke to Feroze Azeez, Deputy CEO, Anand Rathi Wealth Ltd to understand more about how long-term investors should go ahead from now on and whether the current market correction is a matter of concern.
Excerpts:
What’syour advice for long-term investors at this juncture?
The market's reaction has been quite volatile due to the exit polls. From a trader's perspective, it's been a seesaw. For investors, it’s important to remember that markets typically fall 10% from the peak twice a year. The recent market drop is within this range, so it’s not catastrophic. The good news is that a 20-25% correction isn't expected, unlike major events like the COVID-19 fall. Despite today's volatility, long-term growth prospects remain strong, with expected returns of 11-12% per year over the next five years.
Should investors book profits now, especially in small, mid, and large caps?
The domestic momentum of inflow is not coming just out of sentiment, it is coming out of education. In 2013, SEBI started investor education, a lot of money is being spent on this. So, this 20,000 crore SIP is not subject to this kind of a small dampening in sentiment, so that is great news. So, will I book profits as an investor? The answer is no. Because if the market goes down 5%, 7%, 10%, it is sure to come back. But if it goes up, it is not sure to come down because the gravity of the market is upwards unlike the earth where the gravity is downwards, I will not bet against the gravity for sure. And the momentum of domestic institutional buying will continue as long as the SIP continues.
See, what has happened over
