Benefit From Market Volatility

Financial Planning: Mijesh Jain

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When it comes to investing for the long term be it for wealth creation or meeting financial goals, circumventing exposure to equities is nearly impossible. This is because equity is the only asset class which over the long term can generate inflation-proof returns. But the unsettling aspect about equity is the volatile nature of the asset class. No two days in equity market look similar. Any development be it micro or macro in the domestic or global markets can impact the market sentiment. So, one can never predict the direction of the equity market in the short to medium term.

When it comes to long-term market trends, historical data shows that given the growth market that India is, the trend has been a positive one with the markets heading higher and patient investors creating manifold wealth. At a time when there is global uncertainty as to how growth and inflation in advanced economies will play out, not to forget global central policies and how these will impact the emerging economies and currencies, there are too many variables which can impact the Indian equity markets. So, if you are an investor in India in 2023, then be rest assured that this year is going to be a volatile one.