It is always the right time to invest, says Rupesh Patel of Tata Mutual Fund

It is an ubiquitous question in every mutual fund forum: Is it right time to invest? Sometimes the investor would be concerned about the negative news flow; in other times, there might be way too much positive news and a soaring stock market. That is why Rupesh Patel, fund manager, Tata Mutual Fund, decided to tackle the subject at the ET Wealth Investment Workshop held at Ahmedabad on March 8. Patel told the participants at the workshop that he has a simple answer to the query: it is always the right time to invest in the market.


He then elaborated his point why it is indeed a great time to invest in Indian stock market. “The two reforms -- GST and insolvency and Bankruptcy code are revolutionary. Indian equity market is in a sweet spot and provides good opportunity for wealth creation,” said Rupesh Patel.


The upcoming parliamentary election and the stock market cannot be separated these days. Patel dealt with that too at the workshop. He told the participants that volatility is a part and parcel of equity markets and it will be triggered by one or the other event. “If you have to make money in the equity markets, you have to live through the volatility. Don't time the market, spend time in the market,” advised Rupesh Patel.

He added that the investors should never base their investment decisions on the basis of near-term events like elections.

Patel quoted historical data to prove that if investors ignore the short-term noise, they will make money in the long term. “The Midcap category has offered 14.32 per cent returns in the last three years, 18.41 per cent in five years and 22.53 per cent in 10 years. So, it pays to stick to your schemes for the long term,” said Rupesh Patel.

Historical data suggests that Nifty has fallen -4 per cent in 2017, -12 per cent in 2016, -16 per cent in 2015 and -7 per cent in 2014. However, Patel said the fundamentals driving the market are strong and India is a growth story. This means that the markets might be volatile in the short term but there is enough opportunities to make money in the market.

A participant at the workshop asked whether it is a good time for a lumpsum investment in the market. Responding to the query, Patel repeated the often repeated quote about being greedy when others are fearful. “I recommend investors to invest via SIPs or STPs as staggered approach is the best way to invest in the market. However, if you want to invest a lumpsum, invest it when no one is investing in the market,” Patel said.