CEO’s VIEW


CEO Speak February 2022
The first two months of 2022 have been tough on the equity markets. As a varied range of factors combined continues to impact the global markets, the Indian equity markets cannot stay insulated. After some signs of enthusiasm on Budget, it was pressure all through the month. What drove the markets in Feb-22 and could impact Mar-22 also. The geopolitical scenario is a big concern the world over. As of now, Russia has invaded Ukraine and the Western reaction in the form of sanctions has just started. The next few weeks may remain uncertain with the changing geopolitical equations. During the last week of Feb-22, the price of Brent Crude went as high as $105/barrel which will have an impact on our economy.
Don’t Panic, stay invested.
Having said this, this period is again a classic lesson for all investors. As this is the period when the equity markets will tend to be volatile and the inexperienced, new, or cautious investors will be often question their decision of having invested in the equity markets. To them, our advice is that one needs to stay invested through the ups and downs of the markets if your financial goal was long-term in nature. These are cycles and the markets will wither through this one also, as it has exhibited multiple times in the past.
Dynamic Asset Allocation Funds.
It may also be a good time to look at funds that dynamically manage equity allocation based on valuation- ie., increase equity allocation when the markets are cheap and reduce allocation when the markets are expensive. Dynamic asset allocation funds, also known as Balance Advantage Funds, invest in debt and equity and actively manage the asset allocation basis the market movements. This investment strategy helps in taming the volatility hence, helping investors to participate in the long-term growth potential of equity.
Financial literacy is not gender specific.
We, at L&T Mutual Fund firmly believe that financial literacy is a must for all. Whether you are earning or not, one must be aware of the basic investment options available and must plan their financial goals with complete understanding and involvement as it is not an option but a necessity for all. Financial literacy refers to the ability to understand and apply different financial skills effectively, including personal financial management, budgeting, and saving. Financial literacy also makes an individual become self-sufficient so that financial stability can be accomplished. In this information driven age, we encourage all our investors to keep reading and keep themselves updated about the financial assets and mutual funds in specific as simple savings options like Systematic Investment Plans (SIP) go a long way in wealth creation. We also drive this objective through several investor education initiatives (one can read more on https://www.ltfs.com/companies/lnt-investment-management/first-timers. html).
Happy investing!

Source: AMFI, BSE, NSE, Internal







Disclaimer – The article (including market views expressed herein) is for general information only and does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this information. The article provides general information and comparisons made (if any) are only for illustration purposes. Investments in mutual funds and secondary markets inherently involve risks and the recipient should consult their legal, tax and financial advisors before investing. Recipients of this document should understand that statements made herein regarding future prospects may not be realized. Recipient should also understand that any reference to the indices/ sectors/ securities/ schemes etc. in the article is only for illustration purpose and are NOT stock recommendation(s) from the author or L&T Investment Management Limited, the asset management company of L&T Mutual Fund (“the Fund”) or any of its associates. Any performance information shown refers to the past and should not be seen as an indication of future returns. The value of investments and any income from them can go down as well as up. The distribution of the article in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of the article are required to inform themselves about, and to observe, any such restrictions.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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