Small Cap, Schematic Funds Rebound 10% after March Lows. Is this a good time to invest?

New Delhi: After reaching record lows on March 4, Sensex briefly breached the 80,000 mark on April 23, partly due to extensive support from domestic Mutual Funds and an increasingly positive market sentiment despite the Kashmir attacks and the US-China tariff war.

Earlier, the Indian markets had reacted negatively to the US’s steep tariffs imposed on China, Mexico and others, and other investors across the world have remained cautious as a result. Ever since Trump assumed office in January, global markets have seen $10 billion of share values vanish in thin air, and many investors still remain cautious about betting on the stock market.

Source: Moneycontrol.com fall on March 4, Banking and Financial Services Mutual Funds have delivered an average of 14% returns up to April 21, while other thematic funds have offered upwards of 7% returns in the same period, barring technology funds.

Though these are promising results, seasoned market experts have warned against becoming too optimistic.

“Overall, investors are advised to stay cautious as the volatility in the market, and fresh entry should be in tranches, rather than at one go. The silver lining being, most of the negatives have been factored in the market, and unless there is any Black Swan event, staying on the long side, but keeping an eye on valuations, should be the way forward,” Angel One’s Aamar Deo Singh said.

Given the uncertainties of the tariff wars and the unexpected opportunities it could bring to the Indian economy, financial experts suggest investing in balanced or hybrid funds that could offer a hedge against any kind of uncertainties.