Equity returns may be muted, says Balasubramanian of ABSL Mutual Fund

Equity returns may be muted, says Balasubramanian of ABSL Mutual Fund

Mutual fund investors are concerned about the economic scenario caused by the Covid-19 pandemic, and its impact on their investments.of ETMutualFunds.com reached out to, MD & CEO of Aditya Birla Sun Life Mutual Fund, for his perspective on the scenario. Bala, as he is widely known in the industry, asks investors to not give up and continue with their investments. “If you have the bandwidth to continue your investments, then do not stop them or redeem in a market correction,” he advises. For more, read the edited interview:The world of investment goes through ups and downs in every 3-4 years cycle. The last one was in the year 2008. Post-Lehman crisis, a similar situation existed and in general investors’ confidence was tested as the market remained volatile for a period of two years. However, that changed post 2014 and investor confidence came back. In fact, this time, we are seeing a spate of incidents, some unprecedented. We have seen financial market uncertainty starting from IL&FS crisis, to a general slowdown in the Indian economy and subsequently the impact of COVID-19.During such a period, investors have to stay patient keeping in mind the purpose of investment and tenure of investment. Steps that are being taken by policy makers, whether it is from the Government or RBI or other regulatory bodies do create the right impact on the economy and financial markets for its revival over time. In fact, many steps that have been taken in the last two years should play out ...
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