The coronavirus-triggered fall has not only led to a sharp selloff in equity markets but also caused a major shift in the fixed-income space as well.
Post-COVID-19, while investing in stocks or fixed-income instruments, the focus will largely be on “safety of capital”, experts say.
Investors will be better off with minimum returns than trying to maximise profits, a scenario which could become a reality, experts told Moneycontrol.
“This crisis has exposed us to risks that we have been ignoring for a long time. In that sense it will definitely change our behaviour towards consumption and saving. People would probably look to have a larger safety net before spending on consumption,” Pankaj Pathak, Fund Manager, Fixed Income, Quantum Mutual Fund, told Moneycontrol.
IL&FS crisis followed by DHFL and then Franklin Templeton resulted in a loss of confidence in the debt market space.
In equity markets, sharp cuts were seen across largecap, midcap as well as smallcap spaces since the beginning of March.
The Nifty bounced back sharply after falling nearly 40 percent from record highs of January to hit a swing low around 7,500 levels in March but many individual stocks, especially in the small and midcaps space, were down more than 30 percent in the same period.
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