Market Outlook for Mutual Funds Investments in Times of Covid-19 Pandemic

Let us ask ourselves a simple question: 

 

Is This a good time to invest in Mutual Fund?

 

We see the current market conditions of equity and debt market are tough. Returns from equity and debt has been volatile in past couple of months, even returns from gold funds have been volatile but with the upward trend, interest rates are declining in India. As a matter of fact the Covid-19 virus has given enormous collateral damage in terms of jobs, salary pressures, reduced volume of business and higher expenditure of households on daily needs, on the Equity front India should fare better and recover in lesser times as compered to other nations of the world.

As far as retail investors are concerned, this is the good time to invest, mutual funds have always promoted long term investment as an idea where long term has been interpreted for a period of 5 to 10 years or more by different investors, however at this point of time it appears to be the time when 3 years or less would be enough time to generate good returns from mutual funds, depending on certain factors, yet there is no doubt that this is good time to invest in the equity mutual funds.

 With markets slowly gaining momentum on the back of gradual resumption of economic activities, fiscal stimulus from the Centre and rising FPI flows following the novel coronavirus pandemic-induced slump, investors will be getting most of this opportunity to recover their recent losses. It is a good opportunity for mutual fund investors to reassess their current portfolios and revise their strategies. They stand to gain from ongoing market  developments and build a sizeable corpus that can help them achieve their financial life goals.