D-Street Talk podcast | This ‘once in a century’ event could create wealth if investors have 3-5 years

The world has seen recession, wars, natural calamities, but pandemic of this magnitude is history in the making and it is more like once in a century kind of an event, and investors should use the opportunity to create wealth,” Devang Kakkad – Head, Research & Advisory – Equirus Wealth said in a podcast ‘D-Street Talk’ with Moneycontrol.

Equity markets have been extremely volatile across the globe including India amid a slowdown in the global economy. The impact of which was felt in India as well.

The GDP data at 3.1 percent for the March quarter while the GDP growth for FY2019-20 came in at 4.2 percent, against 6.1 percent in FY 2018-19, the lowest growth in 11 years.

“There has been the unprecedented turn of events, but in times like this when pessimism is at a high point – investors should use the opportunity to create wealth over a period of time,” says Kakkad.

“From an investors’ perspective – if we go back in the history and look at the portfolio of investors in 2008-2009 – the ones who invested money at that point in time have made a CAGR of more than 10 percent per annum,” he said.

Kakkad further added that this data point and taking reference from previous crisis, I can say with some level of confidence that investing at current levels would certainly turn out to be a wealth-creating opportunity for investors if they have a time horizon of 3-5 years.

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