Be ready for a roller-coaster ride in markets: Raamdeo Agrawal

As bulls of the Indian markets seem to be showing some signs of exhaustion after a one-way rally over the last 17 months, should investors be worried? Is it time to book your profits ahead of an anticipated correction? Market veteran Raamdeo Agrawal, Chairman and Co-Founder of Motilal Oswal Financial Services shared key insights on what to expect from the markets going forward and the winning strategies for long-term wealth creation.

“Investing in markets is all about patience. Everyone invests in good times, like the ones we are in, the real test will be in bad times. It is the nature of markets to come down after they have risen. Don’t leave the ride and be ready for a roller-coaster”, he said.

He also said that even if the markets look expensive, it won’t be right for investors to stay out. He believes that every day is the right day to invest in markets as no one can guarantee profits or losses.

“Don’t worry even if you make 30-40% loss, the minute you invest. Be ready to invest more at lower levels”, he added.

On the outlook on Sensex, he said that one can for sure expect a 15% Compounded Annual Growth Rate (CAGR) return in markets over the next decade but investors must know that this is what is expected of the index, but investors can make much higher returns even 25-30 times over the next decade.

“The key is not to break compounding. Invest in good companies and good management for next 20-30 years to see the power of compounding”, he said.

Catch the full conversation in the video…