Investing strategy for mutual fund investors ahead of Lok Sabha poll result

Mutual Fund Investment: Stock market and mutual fund investors, analysts said, need to be wary about rich valuations in equity markets at this point

Mutual fund investing: Mutual fund investors have found themselves in the crosshairs of widespread offloading of stocks by foreign institutional investors (FIIs), expensive valuations of the Indian markets compared to global peers, and nervousness ahead of the 2024 Lok Sabha elections' results.

The benchmark S&P BSE Sensex has slipped nearly 1,400 points (1.8 per cent) month-to-date (MTD) in May, while the Nifty50 index has declined 387 points (1.67 per cent) during the period.

Further, the S&P BSE MidCap index has shed 1 per cent thus far in May, while the S&P BSE SmallCap index has slipped 2.43 per cent.