Moneycontrol PRO
UPCOMING EVENT:Are you 45+? Planning for retirement? We have just the right webinar for you - Planning for Retirement with Life Insurance on 27-Jan, 3pm. Register now!
you are here: HomeNewsPodcast

Simply Save | How should mutual fund investors handle stock market volatility

Moneycontrol’s Jash Kriplani talks with Tarun Birani of TBNG Capital Advisors

December 01, 2021 / 05:31 PM IST

The stock markets closed on a positive note on Wednesday (December 1, 2021) with the S&P BSE Sensex ending one percent higher at 57,684.79 points. But stock markets have been showing weakness in last few days with concerns building up around US Fed tapering down its stimulus measures and the emergence of Omicron, the new Coronavirus variant. 

This has led to volatility in stock markets. The S&P BSE Sensex is still down six percent from its highs. The last year’s market crash after Covid-19 outbreak is still fresh in investors’ minds and also the sharp rally that followed. But, is the market rally starting to fade out? Should investors be taking profits or stay put?

There are varying opinions on which way the markets might go. Foreign brokerages have been withdrawing their bullish stance on Indian stock markets. Recently, Credit Suisse in its note said that supportive monetary policy has helped in better-than-expected economic and corporate earnings recovery for India, but Indian markets seem to have already factored in a large part of this recovery.

Analysts are worried about Indian market’s valuations now being the most expensive vis-à-vis other emerging markets. Broking houses -- Nomura and UBS -- have also raised similar concerns. 


COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more

After last year’s strong recovery, the Indian stock markets are up another 20 percent for the current calendar year. 

The sharp run-up in stock markets have translated into huge inflows into equity mutual fund schemes (net inflows of Rs 59,978 crore for CY21). Retail investors have shown higher risk-appetite and participated in the slew of IPOs (including those of start-up companies) that were launched this year. To tap into these positive sentiments, mutual funds have also been launching several new fund offers (NFOs), crossing the 100 NFOs-mark in CY21. 

In contrast to foreign brokerages, domestic mutual fund managers still remain bullish and believe that there are still attractive investment opportunities in the Indian stock markets. 

In today’s Simply Save Podcast, Tarun Birani, founder and chief executive officer of TBNG Capital Advisors talks with Moneycontrol’s Jash Kriplani, on what should investors be doing with their equity mutual fund investments with so many market views floating around. 
Jash Kriplani is a journalist with over ten years of experience. Based in Mumbai. Covering mutual funds, personal finance. His last stint was with Business Standard, where he covered mutual funds and other developments in the financial markets
ISO 27001 - BSI Assurance Mark