Personal Finance

Market fall : Investment advice from top money managers

| Updated on March 23, 2020

Dhiraj Relli, MD & CEO, HDFC securities:

Smart investors exhibit a contrarian approach. As Warren Buffet puts it – be greedy when others are fearful. This is the time to exploit the low stock prices and load up on quality companies for the longer term.

Dhiraj Relli, MD & CEO, HDFC securities


While it is always tempting to try and time the market with exact entry at the bottom, it is equally possible that one may miss the bus altogether. When the markets settle down and the economy begins to recover, there will be intense competition from other buyers and prices will run up fast. Therefore, a patient, long-term investor should put money to work now and gradually accumulate stocks on every fall, in a systematic way.

Nimesh Shah, MD & CEO, ICICI Prudential AMC:

We believe, with the recent market correction and panic due to concerns around Covid-19 spread, the Indian equity market has stepped into an oversold zone. Historically, any meltdown in Indian equities on account of a global crisis has usually provided a good opportunity to invest for the long term.

Nimesh Shah, MD, ICICI Prudential AMC


Our internal Equity Valuation Index (EVI) also indicates that equities are available at attractive valuations. We recommend investors to invest in a big manner in categories like balanced advantage/asset allocation funds and top up their SIPs in equity schemes. We think the entire macro environment at this point in time is very favourable for India.

A Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC:

Long-term investors should keep their investment intact despite the steep fall in the market and the erosion in value, especially in the last three months. The entire world is going through a tough time.

A Balasubramanian, CEO, Aditya Birla Sun Life AMC Limited   -  Bijoy Ghosh


At the same time, regulators and policymakers are taking steps to stabilise the economy from getting into recession and to get back into growth path. Though it will take some time for the recovery to come, when it does, it will be equally big. Therefore, investors should keep an eye on asset allocation with a good mix of equity and debt. The SIP way of investing with a clear long-term purpose should continue.

Motilal Oswal, MD & CEO, MOFSL:

When we say that it’s a fear psychosis, we are in no way undermining the impact of Covid-19. By this, all we are trying to address is that there is an over accentuation of emotions, which is leading to world markets going on a roller coaster ride. There is withdrawal of passive money through ETFs (exchnage-traded funds), and the Indian markets are facing the brunt of it.

Motilal Oswal, MD & CEO at Motilal Oswal Financial Services   -  BUSINESS LINE


It is mindless withdrawal of money and mindful buying of money — so selling is across while buying is very selective. That is the reason why some stocks are creating an abyss on the charts. We think this is a great opportunity to invest for the long term; we are getting these levels almost after four years. The world economy is expected to be flat in the recovery after this disruption; we believe India will have 4-5 per cent growth rate in the initial recovery phase and thereby, will be the golden spot in the world economy. Buy when the gloom is the deepest.

Published on March 23, 2020

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