Mutual Fund Masters: Nilesh Shah on investment strategy and road ahead

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India is currently battling a deadly surge of Covid-19 with the oxygen crisis adding to the woes. So, how will this medical emergency impact the stock markets and investments?

Unlike last year, when markets crashed right after the outbreak of Covid-19 followed by a national lockdown, D-Street has managed to hold itself pretty well in 2021.

“Vaccine hopes have kept the markets optimistic. Investors believe the situation is temporary. Lessons from last year and faith in the ongoing vaccination drive have helped the markets sustain its momentum,” Nilesh Shah, MD of Kotak Mahindra AMC told Money9 in the first episode of Mutual Fund Masters.

What markets also fear is a national lockdown but the central government has been mindful of such a consequence this time around. Prime Minister Narendra Modi advised the state governments to look at lockdowns as the last resort.

“Markets are hopeful that a national lockdown will be avoided. Regional and rotational lockdowns in hotspots should be able to contain the virus and enable minimum economic disruption,” Shah said.

Meanwhile, taking advantage of the ongoing market correction, many investors decided to diversify their portfolios through equities. According to Shah, equity flows turned positive in March, and were able to maintain the streak all this while despite the challenging times. Contribution from Systematic Investment Plans (SIPs) has also increased significantly.