The current bull market is led by retail investors and this decade belongs to India, said Sandeep Tandon, CEO and Director of Quant Mutual Fund in the Moneycontrol Mutual Fund Summit held on 11 October.
“Retail investors are much more mature now. Post COVID they were the first ones who really participated and their employment gains were significantly larger as compared to any other investor on the street. So we believe that they have made extraordinary money,” Tandon said.
He further said that in a bull market, people look for a leader and in the current scenario retail investors are heading it, which is a healthy trend.
Not just this decade but half a century belongs to India and today is the best time for retail investors to optimize the real equity market in India, he added.
According to him, investor needs to be flexible to generate alpha in the turbulent market.
“There's enough opportunity in the market as long as we're looking with an open mind and not with a very rigid approach and the sector rotation is the thesis to generate alpha,” he said. Tandon added that they are mostly invested in the energy and pharma sectors and hardly have any exposure to banking.
Meanwhile, Anup Maheshwari, CIO of 360 ONE Asset spoke about the importance of fund managers keeping their signature style. “The worst thing a fund manager can do is try and change their client's style time and again,” Maheshwari said.
Maheshwari also spoke about the importance of having a long time frame in the market to generate profit as short time frames cause more volatility. “We've shown through earnings that five-year timeframes and above improve the probability of earning, or returns drastically in a one-year, two-year, three-year timeframe, it's really a matter of luck or when you enter in remember you're buying the volatility more than return,” he added.
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