Should investors worry about macro factors, experts share insights

The unprecedented pandemic combined with the Russian invasion of Ukraine, has further magnified the slowdown in the global economy which is now projected to grow by only 3.1 percent in 2022, down from the 4 percent growth forecast released in January 2022, according to the latest UN report.

The World Bank in its latest Global Economic Prospects report states that the world may enter a prolonged period of weak growth and elevated inflation. This can raise the risk of stagflation, with potentially harmful consequences for middle and low-income economies alike.

At the domestic front too, higher commodity prices and RBI’s unexpected rate hike has elevated tensions for the Indian investor. Should these global and domestic factors affect your investments? Should you be worried about the rising inflation and the change in interest rates? and Quantum Mutual Fund conducted a
virtual panel discussion
featuring experts who deliberated on macro factors like interest rates, inflation and global crisis and sought answers to all your investment worries.

The eminent panel also discussed strategies to make iInflation-proof investments and how investors can be better prepared to deal with these uncertainties. The panel titled
Outlook on global and domestic factors affecting consumer sentiments

had Chirag Mehta, CIO, Quantum Mutual Fund, Rohit Beri, CIO, True Beacon and Vishal Dhawan, Founder, PlanAhead Wealth Management as speakers.

Global inflation is projected to increase to 6.7 percent, twice the average of 2.9 percent during 2010-2020, with sharp rises in food and energy prices, as per the UN report.

On how India had managed to contain inflation, Mehta held the view that the government has taken good measures like cutting excise duty on food products, and increasing subsidies on fuel, fertilizers and cooking gas.

“There were supply chain bottlenecks that continued because of Covid and Russia-Ukraine war. Handouts given by the Government led to a very strong demand recovery. Higher commodity and energy prices fed into prices of goods and services. So overall, we are seeing a good mix that is driving this inflation trajectory and is likely to remain higher.”

Beri also reiterated that inflation will be sustained for some time, as oil prices are not expected to come down anytime soon given the Russia-Ukraine situation.

In terms of risk, if one gets a sense that their job is at risk, then they should look at their investment strategy very carefully and decide on how to adjust it in the light of the change in income, suggests Dhawan.

Experts also shared their views on whether Gold can be a hedge in times of crisis and investment trends among Indian investors. For more insights
watch the full session

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