Elevators travel next to electronic boards displaying stock figures at the National Stock Exchange of India. (Photographer: Dhiraj Singh/Bloomberg)

Current Market Volatility Not Good For Short-Term Investors, Nilesh Shah Says

As markets witness a testing time, the near-term momentum is likely to remain negative for investors, according to Kotak Mahindra Asset Management Co. Ltd. Managing Director Nilesh Shah.

“The money and credit markets are witnessing volatility, which has also been impacting the equity markets in the last few days,” Shah told BloombergQuint in an interaction.

Shah suggests conservative investors to stay out if they have invested more than necessary in the equity market, and also aggressive investors who already are overweight on equity. However, investors with lesser equity exposure should not wait indefinitely to build a position in the equity market, he added.

We recommend investors not to invest lump sum money into the equity market. If they are investing with a five- to 10-year view, they can start a systematic investment plan.
Nilesh Shah, MD, Kotak Mahindra AMC

Investors should take a time horizon till June 2019 by when the concerns around oil prices, current account deficit, interest rates, volatility and elections would ease, which will allow investors to average themselves in the market, he said.

Also read: Hardly Any Sectors Available At Attractive Valuations, Says Nilesh Shah