Nivesh Ka Funda: Time is now to invest in mutual funds with lump-sum money, expert Sandeep Tandon of Quant Group tells investors

The right time to put lump sum money in the current situation, retail investors can benefit from investing in large-cap right now. People who have invested in mutual funds should not stop their investments. Besides, it’s a good opportunity for people who carry a risk appetite for equities. Those investors can capitalise on the market, Sandeep Tandon, Founder & CIO, Quant Group, told Zee Business’ Managing Editor, Anil Singhvi, in an exclusive interview.

Tandon talks about behavioural finance. He said that people are looking at small index levels, which appears to be a drastic change collectively. The best geopolitical volatility indicator is global volatility indices. This gives an idea of whether the negative news has factored in for the market or not. 

There is no better data point than global volatility indices to check the status during a war-like crisis. Volatility may spike but would not be able to sustain, and stability follows soon after the fear situation, Tandon added.

According to the Founder of Quant Group, the volatility data tells that the impact of Ukraine Russia conflict has already reached its bottom, and the market is stabilised now. 

He also said that the currency market is the best indicator to tell whether the crisis is going to be extended or not. The currency of emerging markets is very stable, and the impact is now meaningless.

Additionally, Gold, silver, and crude oil prices were gradually increasing. The market didn’t observe any drastic spike of 20 per cent or more, which is expected during a crisis. 

He said that if we look at the market collectively from all multiple data points, including fear index, volatility index, etc. It will tell investors that either the market is close to its bottom or about to reach the bottom as the impact of Russia Ukraine War has already priced in.

He said that it is time to maintain mental stability and look at it as an opportunity to buy. Even if investors look at the trading history, they will see that situations like this are always a buying opportunity.

Although, investors need to ponder over which sector to focus upon or build their approach for the current market.

He recommended looking at the money flow before focusing on a sector and through a global perspective. The 

He claimed that there is no possibility of a war between the US and Russia. We saw Afghanistan being occupied by a terrorist group, and yet no country did anything.

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