What Should Mutual Fund Investors Should Do Before & After 2019 Election Results?

The election in India is underway. Should MF investors focus their investment portfolio on elections?

Over the next few weeks, markets may show high volatility as opinion polls, exit polls and then the final election results 2019 start to flow in. However, in practice, should investors actually be concerned of the elections in India 2019? Let’s see.

Should MF investors focus their investment portfolio on elections?

Most industry experts are advising mutual funds investors to take long term view and take the volatility associated with elections in their stride. 

Some investors may have the opinion that elections may have a long term impact on the future of economic policies in the country. 

As a MF investor, it’s probably the time to make use of the opportunities that the market may throw up. 

SIP investors

When it comes to many investors with existing SIPs and those who are waiting on the sidelines to start fresh SIPs, the election seems to be working as a speed breaker on the road

What to do

What we would not advise at this time is to lock in losses, or exit the markets. For investors that have a very short time horizon, such as the coming quarter, should not be invested in equities,” As an equity MF investor, one should stay focused on the long term goals and the should avoid the temptation to time the market. “Instead of predicting election outcomes, focus on your financial goals. If you are investing in mutual funds based on the political scenario in the country, you are likely to make the wrong investment decision. It’s important to understand that ‘time spent in the market’ is more important than ‘timing the market’.