Nov 10, 2016 3 min read

How Trump’s Win Has Affected Indian Mutual Fund Market?

US election has ended with a win of Donald Trump taking the position of US President. Take a view of its implications on the Indian Mutual Funds.

Now, when Donald Trump has gained the presidential position in the Americas after winning the battle of US elections, it is time to think about the implications. The experience and past relationship between India and the USA proved to be fruitful enough for the industry as a whole and benefited various sectors of India. So lets us have a look on what shall be the effect of the election of the new US President Donald Trump on the Indian Mutual Fund Industry.

The latest news related to Trump presidency has clearly frightened the markets which can be seen with the plunge of BSE Sensex by 1,600 points. Furthermore, the dollar has fallen, and only gold investments are gaining ground in the market. Should mutual fund investors be worried? Well, we suggest you must stay calm.

There is a tendency to overestimate the events which result in the fluctuations of market values. But it must be kept in mind that nothing is stable. If there is a fall in stock values, they will definitely rise in the later span of time. This is how the stock market works. Accordingly, Trump’s win may lead to negative changes over time, but they would give an appreciable impact gradually. Here are some of the major effects of Trump’s win on the Indian Mutual Fund industry as has been observed and analysed by the experts:

The long-term investors need not worry about their finances as there shall be no harm on the values of their capital in the long run. One just needs to stay focused and should evaluate how market took back its position after the Brexit event.

It has been observed and experienced in the past that such events are the best opportunity to purchase an investment through Systematic Investment Plan(SIP).

Gold is enjoying the benefits in a way that its value has been appreciated. It is suggested that one must hold the gold investments for a period of two-three years to earn considerable returns of 12-13 percent and even more. But if you are planning to make a new investment in gold in this current scenario, then we would recommend you to stay put.

The Pharma sector is going to gain huge benefits from Trump’s win as foreseen by the experts. It is an appropriate time to make a sector fund investment in the Pharma industry by the Indian investors.

Although the global volatility shall stay in persistence for a particular period, the long-term investors are suggested to enhance their equity investments to gain remarkable returns in the future.

India’s IT sector shall be under pressure for some time which would affect the smooth functioning of the IT companies in India. Investors who have put their funds in this sector for a short-term period need to reconsider their investments as there are chances of losing the values as well.

Moreover, the US election has lead to an unstable market where short-term investors are facing great challenges. We suggest you must make a better move by putting your funds in the growing and least-affected industries. Although long-term investors need not worry about their capital as they will gain substantial returns in the coming years.

Yes, this time is a crucial one in terms of investing decision and you must take the advice of a highly professional team of experts who could help you out in making a worthy investment. We, at MySIPonline, are ready to assist you regarding investment decisions. You must get in touch with us to take the best advantage of the upcoming and current opportunities for overcoming all the challenges.