Elections 2019: What Should Equity Mutual Fund Investors Do Now

The mandate is out.

- Sanjeev Puri

The National Democratic Alliance (NDA) has emerged the undisputed winner of the 17th Lok Sabha elections with a thumping two-third majority and even the market has welcomed the formation of a stable government at the center. The frontline stock market indices have touched an all-time high and looking forward to new triggers and economic measures by the government in the coming days.

Equity mutual fund investors need to get the ground prepared to capitalize on the long-term gains from the market that this new government is out to deliver. The only bit of caution is that currently market is highly priced, stock prices are trading at high valuations and upcoming interim budget may be the next big trigger.

The investors also need to understand that volatility is part of the equity markets. Government policies may take time to be fruitful. The global stock markets may show its own volatility thus impacting Indian markets to some extent. Investors, especially retail investors in these times, can’t do much about it but are certainly concerned about their portfolio. The only bit of advice most financial planners and industry experts have to offer is to stay calm. The high tide may come but as witnessed several times in the past, the tide will turn and better time will prevail.