Over the last few days, the COVID-19 pandemic and the resulting market volatility have created a difficult situation.
During these trying times where the nation is virtually under a shutdown, let us deal with the challenge together.
We have invited individual MFDs to share their experiences on how they are coping with this virtual shut down and keeping things going.
Here is how they are dealing with this challenging times,
Kunjan Shah, GautamLabdhi Wealth Management
Educate clients about implications of COVID-19.
Last few weeks have seen massive wealth destruction worldwide. Equity markets have corrected around in India too. Many investors have also taken a hit and must be worried about the current scenario and thinking what to do. It must be very painful to see such erosion in value of investments.
As advisors, we are also much in pain when we see the portfolio getting hit by such falls. It all happened so fast around the globe due to coronavirus scare that there was little time to take any suitable measures to protect the fall in value. At this stage, changing the asset class from equity to debt doesn't seem to be a good choice.
Events like these are black swan events which happen once or twice a decade. History suggests that things eventually improve after such events. We should urge clients to sit tight on their investments. We strongly suggest our clients to continue SIPs as they are helping you buy at lower levels. Remember, buying cheap is the essence of getting higher returns and so we would also suggest you to consider buying lump sum in 2-3 tranches if markets go down further.
Shailly Seth, Varanasi
The current slowdown has offered good entry point to investors.
Last few days have been really hard for us all. Be it fund managers, MF distributors or investors, no one knows where the market is headed. Many investors are panicking due to the sharp fall in key indices.
However, we firmly believe that the current market slowdown offers a good entry point to investors. We have educated our clients that current slowdown is an opportunity for them. Thankfully, many existing clients have increased their investments with us and we have been adding new investors and prospects every day. In fact, we have been able to increase our business by 18% this month so far. We have also increased our SIP book to Rs.2.50 lakh per month.
In addition, we have also been successfully trying to convince investors not to redeem but stay put.
