“I do think that we are going to see a period of stress. But my advice to retail investors is that if you are fundamentally invested, don’t panic, because we are a relative standout in the global economy,” says UTI Mutual Fund’s Leo Puri
One person who believes that the recent moves in China are just a trigger and not the cause for the sell-off across global markets is the managing director of UTI Mutual Fund Leo Puri. He says the ‘correction’ was in fact long overdue and while the India growth story may still be intact, volatility in the short-term cannot be ruled out.
Puri says: “I don’t think we will see deep trauma setting in for now. But I do think that we are going to see a period of stress. Volatility and stress, essentially and my advice to the extent that I would offer at this point to retail investors in India is that if you are fundamentally invested, don’t panic, because we are a relative standout in the global economy. And I would actually say that stay purchased, it is actually not a bad thing at this point.”
He believes some institutions may also stand by for a little bit on the sidelines.
“So I do anticipate that there will be a period of stock taking on the part of global investors, global institutions, while they try and asses what their allocations and their outlook are going to be for emerging markets like India,” he adds.
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