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As the nation approaches the results of 2024 general elections on June 4, there are many conversations in the financial world on its impact on the markets and investor portfolios.
There is also a question in the mind of investors and MFDs: Can the impact of election results on the markets be leveraged for short term returns. Cafemutual asked top MFDs on the tactical call they would recommend following the election results for lumpsum investment.
Mumbai MFD Vatsal Shah from Sushil Finance doesn’t recommend any short-term investment specific to this period. He said, “I expect some fall in the stock market following the election results. There can also be volatility for a brief period. However, I would not advise any lumpsum investment in the short term specific to this period.”
Akta Sehgal from Manas Wealth does not think there will be a big impact of the election results on the markets. She said, “Although we do take some strategic calls every now and then, we believe more in long-term approach. The election results, anyway, are a non-event from our perspective. We do not see the market showing any signs of a dip right now. So, I would not recommend any short-term calls.”
Indore MFD Rajesh Kulwal from Duoak Finserv recommends a more cautious approach. He said, “The markets are too volatile and unpredictable. If an investor is looking for a short-term call then he should wait until the results come and then take a decision after there is more clarity in the market.”
However, a few MFDs have a different view. Asansol MFD Sukanta Bhattacharjee said that he would recommend tactical call after the result. He said, “If the current government come to power, I would recommend investment in infrastructure due to their focus on infrastructure schemes. Contra funds can be good choice if the market goes down.”
