Carnage or Best Opportunity before LS24 Elections?

Small Caps and Midcaps witnessed Black Wednesday today. After Stellar Performance in last 15 Months, Profit Booking was always on the Cards and we had been asking Investors to Stay Invested in Liquid Funds since November 2023..

What lead to the Fall? SEBI asked Mutual Funds to Moderate the Inflows in Small And Midcap Funds, highlighting the Risks associated with it.

This news made rounds in the market and was over sold in the Stock Market.

SEBI Chief also made statement on SME IPO Valuations, leading to Panic Situation

Is it the Best Opportunity?

Typically Markets show Negative Growth in the month of the March..

Considering the Fact that Small Caps have given One Side Rally from Dec 2022, A Profit Booking Phase was always round the Corner.

After hitting all time high of 16691 from 8682 in last 1 Year, NSE Small Cap 100 Index has settled today at 14295, with 14.35% Down from the Top..

We believe that Small Caps and Markets may have some more volatility left before it recovers.

Current Situation has given a Wonderful Buying Opportunity in staggered manner to the Investors.

Below Points may help earn some Conviction about Investing in MFs

1) Opinion Poll Results on Loksabha Election 2014 indicating 3rd Term to Modi Government

2) India is Expected become 3rd Largest Economy by 2026

3) Interest Rates across Globe will start going down in this Calender Year or First Quarter of Next Calender Year. This will have Huge Foreign Money coming in Indian Stock Market and will lead to Super Rally.

4) MF SIP Amount Per Month has reached 19100 Crore Rupees per month (Yes your read it correct, Nineteen Thousand Crores are getting Invested every month through MF SiPs)

Its time to Grab the Wonderful Discount Offer offered by the Markets.