As markets dwindle, add more equity to your portfolio

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A record single day rise of 2,73,810 fresh Covid-19 cases and 1,619 fatalities sent the stock markets into a tailspin on April 19. With Delhi Chief Minister Arvind Kejriwal announcing lockdown restrictions until April 26 and other states also announcing curfew measures, what should be an investor’s strategy amid this COVID-led turbulence?

“I think we need not do much at least for one month from here on. Unlike last time when fear based corrective measures were taken, logic driven market correction should be expected this time as we face the second wave of Covid-19. We know enough of the disease today unlike last time when there was lot of uncertainty,” Feroze Azeez, Deputy CEO of Anand Rathi Wealth Management, told Money9.

He advised investors to take advantage of the interim fear and scale up their portfolio above 50% and below 65% in equities.

Azeez also hinted if things go extremely southwards, a market correction up to 10% could also be expected. However, unlike last time, he believes gold prices won’t soar any higher during the pandemic’s second wave.

“Gold enjoyed a good rally last year because the entire globe was more or less equally impacted by the pandemic. Today, however, each country is experiencing different concerns and the fear levels also don’t seem to be in sink. Gold prices would have surged if the entire world was equally worried about the pandemic which, as we know, is not the case,” Azeez reasoned.

Watch the full interview here::