Kamal Manocha, Founder, PMS AIF World, who has more than 15 years of experience as an investment advisory, said in a conversation with Moneycontrol that from the valuation perspective, the downside is very unlikely in the market. The market may now fall further in the same situation when both FII and DII start selling simultaneously but this is unlikely to happen.
He further said in this conversation that any correction means that the market is moving from the inverse level to the correct level. In this case, investors need not worry too much about the correction of the market. Along with this, they should also not buy indiscriminately in this fall by filling them with great greed. And this fall of 2022 should be welcomed with caution and expectation and right investment opportunities should be found in this fall.
He said that if one invests from a long-term perspective, then betting on a single sector would not be a good way to invest. It would not be right to depend completely on the cyclical sector like banks. We should adopt multisector portfolio approach for long term investment. This is the best strategy to get good returns and reduce risk.
Talking about the future movement of the market, he said that rising inflation is a matter of concern for the market. Inflation affects the purchasing power of the people. The worst effect of inflation falls on the workers associated with the unorganized sector and people with fixed income. Because the income of these people remains the same, but due to the increase in inflation, the expenditure increases.
In such a situation, in this era of rising inflation, there will be a negative impact on the consumer sector. Apart from this, inflation also adversely affects those sectors where the final product takes time to form and in this long run a large inventory is created. For example, construction can be taken in which houses take time to complete but their margins are adversely affected due to increase in raw material prices during this period. In such a situation, it would be advisable to stay away from these sectors for the time being. Investors would also be advised to adopt a multi-sector approach instead of focusing on one or two sectors. Focus on companies with good business infrastructure.
If there is a surplus of 10 lakh rupees for investment, then know where to bet at this time
He further said in this conversation that every macro event has both some positive and negative impact on the market. The most recent example of this is of COVID-19. He further said that if there is a fall in a good company due to any macro factor, then there is a better opportunity to invest in that company. take care of it.
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