Wealth Creation Day: Market rewarded who remained patient since March20 crash, invest money for long-term, says Nilesh Shah of Kotak AMC
Wealth Creation Day: Market rewarded who remained patient since March20 crash, invest money for long-term, says Nilesh Shah of Kotak AMC
In a stock market carnage, Sensex and Nifty had logged their highest losses two years back on March 23, 2020. As it's been two years since the market created its bottom, Zee Business Managing Editor Anil Singhvi, in a special programme 'Wealth Creation Day', spoke with Nilesh Shah, Kotak AMC Group President, and sought his views on how things have unfolded changed since then and what learning an investor can get from this crash.
Kotak AMC Group President said that one who remained invested has been rewarded as the market has been able to do extremely well from Covid peak. "It is always the darkest before the dawn. Covid 19 was a new experience for everyone and the market responded accordingly, however, those who remained firm with their investment made huge money during this period. Ultimately, only one thing worked out during this period, which was your trust in the market and your optimism with regard to valuation as market has been sitting after discounting all negative news," said Shah.
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On huge number of new investors who have joined the market in the last two years and have not seen sizable correction and are worried about their investment, Shah says one should focus on long-term investment and allocate only limited fund for their trading ideas.
"Traditionally, a trader's life cycle shows that 99 out of 100 traders book profit, while only 1% succeed. On the contrary, 99 investors make money in the long-run and there is only one that misses out. It is very important that if one wants to do trading, they should use limited fund and follow stoploss strictly," said shah.
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On what should investors do amid geopolitical uncertainties, Kotak AMC MD said both extremes are possible in in current scenario. "We cannot predict the outcome of Russia and Ukraine war. In case Russia and Ukraine war comes to an end, oil prices will go down aiding our market, however, in opposite scenario, the oil price will shoot up bringing in more volatility in the market, " the expert added
In the biggest fall, Sensex had tanked by 3,934 points to 25,981and Nifty closed 1,135 points lower to 7,610 on March 23, 2020 amid rising cases of coronavirus and subsequent lockdown in many states. Sensex hit an intraday low of 25,880 and Nifty had fallen to 7,583.
(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
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