Iran War Ceasefire: HDFC AMC's Navneet Munot Expects Record SIP Inflows

Following the major agreement that saw the US and Iran come to a temporary ceasefire and halt to hostilities, paving the way for the latter to momentarily reopen the Strait of Hormuz for two weeks, HDFC AMC's Navneet Munot is advising retail investors to maintain their steady flow of equity investments and is expecting record SIP inflows.

Reflecting on the rapid de-escalation, Munot compared the current market environment to previous historic shocks. "During the COVID times, we used to discuss that there are days where decades happen and there are decades where nothing happens. And I think in last couple of days we have seen like decades happening," he told NDTV Profit.

Despite the temporary relief in the Middle East, Munot pointed out that long-term structural changes will continue to drive markets.

"The global order is evolving, the whole geopolitics is realigning, and I think every country, every society, every organisation needs to realign, restage, and reimagine everything, including, let's say, the whole supply chain, particularly. How do we move from 'just-in-time' to 'just-in-case', and there are big opportunities there for everyone," he said.

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For retail investors looking to ride this volatility, Munot stressed that SIPs remain the ultimate weapon.

"Investors need to focus on their goals, stay with their asset allocation and remain disciplined. Do not react to the news flow. The best way to create wealth is to remain disciplined, and SIP has been the best vehicle," he stated.

Munot went on to suggest that retail investors should actively buy into recent market dips. "In fact, over the last couple of weeks, when the heightened volatility was there, our message to investors was not only to stay put, but if you have the ability and have a lower allocation, then enhance the allocation to equity," he added.

He even added that March will break records in terms of the SIP number, as he has witnessed significant investments in the wake of the market volatility.

"This month's number, the March numbers are likely to be disclosed in a day or two by AMFI, and my sense is it's likely to be an all-time high on the SIP number, and that clearly shows the maturity of the investors, and I would like to thank all stakeholders for making that possible," Munot concluded.

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