Moneyfront's Mohit Gang urges investors to have long-term focus amid market volatility

In the face of recent market fluctuations that have left some investors on edge, the question on many minds is: How should mutual fund investors respond to this uncertainty? Is it time to tweak investment strategies, and what impact do events like Budget truly have?

According to Mohit Gang, CEO of Moneyfront, these market shifts are all part of the game and investors with a long-term perspective need not succumb to anxiety.

Gang acknowledged that recent events may have injected some nervousness into the market, but he is quick to reassure investors that market dynamics inherently involve peaks and troughs.

Stressing the significance of maintaining composure during such times, Gang advocated for commitment to one's investment strategy.

For those focused on long-term wealth accumulation or securing their retirement, he said that consistency remains paramount.

The CEO advised investors to stick to their asset allocation strategy and stay dedicated to their financial objectives.

Even during periods of market growth, Gang recommended periodic portfolio rebalancing by channeling profits into debt instruments to sustain the desired asset allocation.

Such a disciplined approach, he believes, shields investors from impulsive decisions and helps weather market fluctuations with resilience.

When questioned about common pitfalls during market corrections, Gang highlighted two critical factors. Firstly, he underscored the importance of holding cash reserves, providing investors with flexibility during market downturns.

Secondly, he cautioned against straying from the chosen asset allocation strategy, as such deviations can result in hasty decisions and capital losses.

Turning attention to events like Budget, Gang emphasised the need for a more uniform taxation system across different asset classes.

Illustrating inconsistencies in the taxation of various investment instruments, such as gold funds, physical gold, and sovereign gold bonds, Gang advocated for transparency and consistency.

He said that a standardised taxation framework across asset classes would simplify investment decisions for mutual fund investors.