People should invest in the equity market now through mutual funds because of the attractive valuation of stocks, but should not expect short-term gain, says Association of Mutual Funds of India (AMFI) Chairman, Mr A P Kurian.
“This is the right time to invest in the market through mutual funds as the valuations of stocks are now very attractive,” Mr A P Kurian told a programme organised by Dun & Bradstreet here.
Investors should not expect short-term gain from their investments. They are required to stay put for three years and beyond, Mr Kurian said.
The global economic meltdown and subsequently huge churn out by the Foreign Institutional Investors (FIIs) from the country's stock market have led to bear run with the sensitivity index falling from 21,000 points at the beginning of the current year to 9,385 on the last trading day on November14.
Mr Kurian said that highs and lows were not an unknown phenomenon in the stock market and that should keep the long-term investors to have faith in the market.
“The Indian story is strong and will remain strong for decades, because we are a demand-driven economy. We are sure to bounce back either in 2009 or in 2010. No business cycle remains a one-way traffic. This country is too strong to collapse,” he said.
Stating that the Indian corporate entities were of world-class standard, Mr Kurian asked, “Do you think Tata Steel, L&T and Reliance will close down?”
“This is the right time to invest in the market through mutual funds as the valuations of stocks are now very attractive,” Mr A P Kurian told a programme organised by Dun & Bradstreet here.
Investors should not expect short-term gain from their investments. They are required to stay put for three years and beyond, Mr Kurian said.
The global economic meltdown and subsequently huge churn out by the Foreign Institutional Investors (FIIs) from the country's stock market have led to bear run with the sensitivity index falling from 21,000 points at the beginning of the current year to 9,385 on the last trading day on November14.
Mr Kurian said that highs and lows were not an unknown phenomenon in the stock market and that should keep the long-term investors to have faith in the market.
“The Indian story is strong and will remain strong for decades, because we are a demand-driven economy. We are sure to bounce back either in 2009 or in 2010. No business cycle remains a one-way traffic. This country is too strong to collapse,” he said.
Stating that the Indian corporate entities were of world-class standard, Mr Kurian asked, “Do you think Tata Steel, L&T and Reliance will close down?”
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