2024-08-07 19:24:19
New Delhi: There was a huge decline in the stock markets around the world on Monday. One of the major reasons for this is also believed to be that the stock market is overvalued right now. If it is difficult for you to understand the current situation of the market, then there is an easy way to do this. You see how much cash the big players of the stock market are accumulating. Earlier, many bad news like Japan ending the Yen carry trade, fear of recession in America and increasing tension in the Middle East had caused turmoil in the stock markets around the world. During this time, the cash of legendary investor Warren Buffett increased to about $ 277 billion in the June quarter. Buffett’s cash increased for the seventh consecutive month. This is an indication that he is finding it difficult to choose good shares at good prices. The total cash holding of all equity-based mutual funds in India was Rs 1.52 lakh crore in June, which was 4.59% of their total assets under management. The country’s largest fund house SBI Mutual Fund had the highest cash allocation of Rs 26,902 crore in June. Other companies like ICICI Prudential and HDFC AMC were also sitting with cash of at least Rs 20,000 crore. This indicated a bearish outlook on one hand and a buy on big dips on the other.
Tuesday was a happy Tuesday, investors earned 7 lakh crores, Sensex jumped 1000 points
Why should investors
Piyush Nagda, Senior Vice President (Investment Services), Anand Rathi, said that domestic AMCs have a huge amount of cash, which will soon stabilize the Indian markets. If investors cannot focus on individual stocks, they can invest through mutual funds. However, those who want to buy on dips should do so in a phased manner as it may be the beginning of a decline. Siddharth Alok of Multi Ark Wealth said that investors should keep an eye on their overall asset allocation. If they want to invest for more than three years, then they should buy on these dips.
Sandeep Bagla, CEO, Trust MF, said that we must understand that the pace of market performance in the last few years has been unreal and it is unlikely to continue in the future. One should invest only if he has a long-term investment plan to deal with immediate fluctuations. Investors who have the ability to maintain investments for a long period should invest systematically in the next few weeks of correction in sectors where valuations are not high.