A good start to the year as benchmark indices hit their fresh record high in January, but since then it has been a roller coaster ride for investors as the spread of COVID-19 pushed investors to safe havens such as Gold, and treasuries, Prakarsh Gagdani, CEO, 5paisa.com said in ‘The Market Podcast’ with Moneycontrol.
After witnessing a relief rally in April all eyes are on the month of May which is a synonym for an age-old saying ‘Sell In May and Go away’. But, this time the saying could be tweaked this year to ‘Sell in 2020 and come back in 2021’, said Gagdani.
After seeing a relief rally in April, the month of May is likely to be volatile, he explains. A large part of the market movement will be dependent on what happens across the globe with respect to the easing of lockdown in the US, as well as the spread of COVID-19 cases.
Overall, the month of May is likely to remain volatile, and we may not see a repeat of what we saw in April when benchmark indices rose by more than 14 percent each.
Redemption pressure!
Yes, there is redemption pressure in mutual funds, says Gagdani but that is largely on the debt side because of what happened with the Franklin Templeton schemes.
“We are also seeing some redemptions happening on our debt portfolios of the customer, but there is no pressure on the equity front as such,” he said. “We are seeing healthy investments on the equity front, and investors are pulling out money who are largely risk-averse,” he said.
(Tune in to the podcast for more)
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