India reported more than 1.8 lakh cases of coronavirus on April 14, a there’s been a steady rise in the fresh cases for over five weeks now. The rising infection rate and death toll in the country has left the markets volatile and first-time investors quite perplexed. How do analysts view the current market scenario and what is their advise to first time investors?
“Right now, we’re in the midst of a ‘wait and watch’ situation due to the pandemic, lock down and subsequent economic disruptions. We’re witnessing some challenging times and I do empathise with first time investors. We have decisively entered an era where generating high returns require even higher risks. With high market volatility and interest rates of small investments significantly down, there is dearth of opportunities for young investors,” Aashish P Somaiyaa, CEO of White Oak Capital Management told Money9 in an exclusive interview.
Equities have time and again beaten every other investment model absolutely hollow yet many first time investors are hesitant to tap into them. According to Somaiyaa, it is the risk perception attached to equities that often becomes the bone of contention for new investors who don’t want to jump into anything uncertain.
“Last 2-3 years, markets have been uncharacteristically volatile, risk prone and unprecedented. This is what probably scares new investors. Markets need to exhibit a stable phase to gain the confidence of investors today,” he reasoned.
The last year, with all is abnormalities, taught us that things do bounce back with time. Markets might be extremely volatile today but Somaiyaa is optimistic about the future. He suggests investors to buy on dips, invest in SIPs and stay positive.
Watch the complete interview of White Oak Capital Management’s CEO Aashish Somaiyaa below:
