Home / Business and Economy / CEO Shenoy: Brace for Market Drop, Find Opportunity
CEO Shenoy: Brace for Market Drop, Find Opportunity
9 Mar
Summary
- Investments should be spread over three months to a year.
- Portfolios will bleed; anticipate man-made disaster impact.
- A 10% market drop is a good point for measured allocation.
Deepak Shenoy, CEO of CapitalMind Mutual Fund, has cautioned investors to prepare for significant market volatility, describing the current downturn as a "man-made disaster." He urged investors not to succumb to panic selling, acknowledging that portfolios are expected to experience substantial declines. Despite the grim outlook, Shenoy highlighted that market drops also present valuable investment opportunities.
Shenoy advised a strategic approach to investing during this period, recommending that any lump sum investments be spread over a timeframe of three months to a year. He noted that the Nifty 500 is currently only about 10% below its all-time highs, suggesting further declines are possible. However, he pointed out that a 10% drop often serves as a favorable entry point for investors with a view of three years or more.
Emphasizing diversification as a tool for maintaining calm during turbulent times, Shenoy also warned against attempting to time the market with "sell now, buy back later" strategies, as these often prove counterproductive. His core message is to prepare for challenging market conditions while strategically positioning oneself to benefit from opportunities that arise from panic selling.
