Volatility today, rewards tomorrow: Why Mohit Khanna says investors will be happy

Despite prevailing market volatility, many analysts believe that investors putting money into equities today are likely to be satisfied in the long run. In an interaction with ET Now, Mohit Khanna of Purnartha Investment Advisers expressed his confidence in the market’s recovery trajectory, emphasizing that while near-term fluctuations may persist, the long-term outlook remains optimistic.

Khanna acknowledged that predicting the exact market bottom is difficult, but he remains convinced that the worst of the correction may already be behind us.

“We expect some volatility in the near term, but I can tell you one thing—clients investing money today will be very happy two years from now,” he stated.


The key reason for this confidence is the India growth story, which Khanna believes will continue to play out strongly over the next couple of years. The recent correction, he explained, has helped remove excess froth from the market, making valuations more attractive in certain pockets.

This creates a favorable entry point for long-term investors, setting them up for solid returns as the market stabilizes and resumes its growth trajectory.

When asked why clients investing now would benefit in the long term, Khanna pointed to the improved valuation landscape.

“Corrections have taken out a lot of excess from the market, and while some might still remain, investors entering at today’s relatively better valuations are bound to make money,” he explained. He further emphasized that fundamentals remain strong, and as earnings growth picks up, the market should respond favorably over the next two years.

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While discussing valuations, Khanna highlighted that certain sectors and individual stocks have corrected to attractive levels, particularly in the midcap and smallcap segments. However, he advised a selective, bottom-up investment strategy focused on earnings recovery rather than broad market exposure.

“In the recent short-term recovery spurts, growth-oriented stocks have outperformed, while value stocks remain abundant, especially in the midcap and smallcap space. That being said, one needs to be very careful in identifying opportunities,” he cautioned.

At the index level, he admitted that the market might still appear somewhat overvalued, but he reiterated that a deeper look into individual stocks reveals significant value in various sectors. “Multiple stocks have corrected meaningfully and now present compelling opportunities,” he added.

While short-term volatility remains a factor, long-term investors who enter the market now are positioned to benefit from improved valuations and future earnings growth as Mohit Khanna too suggested focusing on selective opportunities rather than broad market bets, with a keen eye on sectors poised for a strong recovery.

For those looking beyond the short-term noise, the next two years could be a rewarding period, making today’s market an opportune entry point for investors seeking long-term gains.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)