The possibility of Corona Virus – COVID-19 – disappearing from the face of the earth is near to impossible, at least in the distant future! No doubt, COVID-19 is unusual and all efforts are being made to find a vaccine and a cure. But till then, if we can’t beat it, we need to learn to live with it!
Many of our investors continue to call us on whether they should continue to invest in equity mutual funds. The answer to this question is best illustrated by the chart to the left (Source: Charles Schwab, Bloomberg). Since 1980, the world has witnessed deceases many of which we continue to hope that life-saving cures or vaccines are developed. Despite these challenges, equity markets have continued their growth trajectory as individuals, institutions, companies, and countries have worked in tandem to face these crises. So is the case now, while we are faced with unprecedented times the world starts opening up.
The fact is, growth has been the cornerstone of economic activity world over. Growth cannot be excluded from policymaking, investment decisions, and company expansion. There will be blips as seen by this chart (Source: BofA) but in the long-term, growth comes back with a vengeance. What next if we need to continue to build our portfolio and in turn create wealth? Our belief is a well-diversified portfolio of Indian and international equity funds will help you meet your objectives. How much, depends on the risk you want to take. There is no doubt that life is not coming to a standstill.
Post lockdown it is important to align your portfolio to the five big themes shown in the chart to the left. No doubt, the way we live, eat, engage, and invest will radically change and will take some time to getting used to.
Governments have taken decisive steps in the direction of pulling the economy back on track. Big bang announcements are being executed and we are confident that it’s a matter of time to see the cycle of economic activity developing into a stronger more forceful execution leading to improved growth.
Till then SELECT, INVEST, RELAX the Phundoway! Give us a call and we will be pleased to advise on building a portfolio that gains as the economy grows.
Mutual funds are subject to market risks. Please read the offer document and contact your advisor before investing