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Mature investors will continue their SIPs in April: Jignesh Desai

Follow your asset allocation strategy and stick to your financial plan, says the co-founder of NJ Group.

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Last Updated: Apr 01, 2020, 03.29 PM IST
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Do not invest in direct stocks and convert this crisis into an opportunity.
Could you tell us what are the trends that you are witnessing in the last one month? What essentially have been the key questions from your customers?
Last 10 days were quite difficult for us. Lot of investors are worried about their investments. But if you look at the data from 27 to 28 March, we have received around 7,000 new SIPs. That means the investors who are matured and are investing since the last 8-10 years are putting in money but the new investors who have not seen any fall in the investment are facing some challenges.

One of the fund managers today said that the trend in April will be actually much more interesting to see. Can you just give your thoughts as more than March, what happens in April will be important?
Yes, if you look at the past, there have been around seven to eight falls in the last 20 years. The post-fall situation is very important to see and it is very difficult to predict the next month. But yes, the situation is currently uncertain; so we will have to see. Again, I am very confident that the matured investors who are investing their money will continue with their SIPs. They are not stopping their SIPs but we will have to see how things will pick up in the next month.

You have great experience of markets, especially on how to manage the portfolio and balance the asset allocation. Can you tell us what message are you giving from your 25-year experience to the thousands of investors that you have?
My message to all the investors is do not stop your SIP. Follow your asset allocation strategy, talk to your advisors, stick to your financial plan and do not panic. Do not invest in direct stocks and convert this crisis into an opportunity.

In such times, people also look to raise cash for emergency funds because the uncertainty tends to increase. What is the trend you are seeing on that front? Any trends that you are seeing in HNIs particularly, where they invest lump sum and withdraw lump sum?
There is definitely a concern about the emergency fund from the salaried class and unorganised sector. HNIs are not really worried about the emergency fund; so they are following the asset allocation model and based on their model, they are investing into the market.

What is your internal research model like MARS telling you about market valuation? Have you been advising in increasing exposure to equity? How do you change the asset allocation from largecap, midcap and smallcap in the current environment?
The asset allocation on debt and equity right now is around 75% and the model is suggesting to go up to 100% in the equity.

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