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Prominent investment expert Prashant Jain has emphasised the importance of patience and long-term vision for investors in the stock market. Speaking at the 7th Dhanam BSFI Summit and Awards in Kochi, Mr Jain shared his insights on navigating market volatility and advised investors to approach the stock market with a strategy similar to investing in gold.
Mr Jain pointed out the impressive growth of India's Sensex, which has risen 800 times over the last 45 years, climbing from just 100 points to 80,000 points. He predicted that the Sensex could double in the next four to five years, largely due to the appreciation of the Indian rupee and the growing stability of the Indian economy.
Long-term gains over short-term profits
Despite the strong performance of the stock market over time, Mr Jain reminded investors that the market remains volatile. He urged them to focus on long-term gains rather than short-term profits. "It is never wise to panic sell," he said, stressing that investors should wait for the right moment to sell stocks when they are sure of higher returns.
Right time for investment
Mr Jain also addressed concerns about the recent trend of foreign investors pulling out of the Indian market. He reassured domestic investors that this should not cause undue worry, as such selling is often influenced by global factors such as the ongoing West Asian conflict or shifting investment interests towards markets in the US and China. For domestic investors, Jain saw this as an opportunity to invest in quality stocks at a lower price.
Stock market similar to gold investment
Drawing a parallel between investing in stocks and gold, Jain explained that, just as Malayalis have a deep-rooted tradition of investing in gold for the long term, stock market investments should also be seen as a long-term commitment. "Choose stocks of companies with good future potential, and hold them for decades," he advised.
On the global stage, Mr Jain expressed confidence in India's position, noting the country's ability to maintain positive relationships with key players like Russia and Ukraine. He also suggested that the rise of Donald Trump to power in the US would likely not harm India's interests, as many US companies have set up operations in India and there is a significant Indian workforce in the US.
