How Demonetisation and Donald Trump's Win Struck Mutual Funds?
The success of Donald Trump of US presidency on November 8, 2016, led to anxiety among the investors. On the other hand, the Indian Prime Minister Narendra Modi announced demonetisation of old Rs 500 and Rs 1,000 notes on the same day. This event too led to enhancing the market volatility. The impact of both these events spread across the various asset classes in mutual funds. Let’s see how it has affected your investment.
It has been observed by the analysts that the outcome of US Presidential elections has brought uncertainty in the market. There is a lot of confusion and ambiguity regarding the new economic policies. Furthermore, it may also affect the Indian equity markets in the upcoming period. On the flip side, due to the abolishment of the high-denomination notes in India there is a probability for the economy to suffer from a reduction in demand. Although it is causing a negative impact in the short run, the long-term effects shall be fruitful and productive.
Both these events have made the entire market scenario worth noticing as everyone is looking for the consequences on their capital. It is quite obvious for us to keep a watch on the market so that we do not lose our money’s worth at all. Furthermore, it is equally important to put the funds in a productive scheme so as to take advantage of the current situation. As we know, the market has been affected severely due to Trump’s win and demonetisation; the stock indices are frequently fluctuating. Hence, it is the perfect time to take a strong investing decision.
Mutual fund investment schemes are undergoing a reduction in their prices due to the impact of Trump’s victory and demonetisation at the same time. With this, the unit price has reduced, and investors have the greatest opportunity of buying a large number of investments at a low rate. As per the predictions, the short-term goals cannot be achieved in the current scenario, however, the long-term investments are expected to yield greater returns.
The investors who were waiting for the better occasion to buy large stock have such opportunity right away. With a small amount of money, they can buy more units in mutual funds and make a worthy plan for their future. Moreover, as per the situation, it is further recommended to go for a systematic approach to investing. This is why we suggest our investors put their money in the long-term SIP plans in order to accomplish their investment goals in the long run.
We, at MySIPonline, have a strong determination that the present market situation has brought the greatest chance for the investors to put their money in the fruitful schemes for a fortunate future. They would offer greater returns in the coming years which shall help them as well as the economy to grow higher.
If you are in a dire need of the best advisory solutions to take a decision of investing in the schemes of mutual funds, then you must take our services and tools to make a productive investment portfolio for a worthwhile future.
- LTCG Tax Is Not As Negative As it Seems; Here’s Why?49684 min read Jan 01, 1970
- Sensex Plunges Over 1000 Points; Should You Buy or Hold Your Investments for Correction?50273 min read Jan 01, 1970
- Sensex Dives Nearly 840 Points: Things to Consider and Experts’ Take51593 min read Jan 01, 1970