The Nifty’s sharp turnaround — rising 895 points or 8.4 per cent — over the last two trading days (Friday and Monday) has suddenly changed the narrative for stock market investors. Just a week ago, many were celebrating fund houses that were sitting on high cash to protect the investor from losing more money.
Due to the sharp movement in a very short time, any equity fund manager who had gone heavily into cash to protect himself against the market downturn would have missed out on these returns. These events raise the question whether investors should invest in funds that