We don’t have a lot of information to make an informed decision. All we know is that two employees were suspended for allegedly using inside information to make money. They may have bought shares before the fund bought the shares. But have investors lost money because of their actions? If yes how much ? We still don’t have answers to these questions.
Investment experts say such purchases are unlikely to make much of a difference to the stock price of big companies because there are enough shares floating around in the market. This means that if you have invested in a scheme that has investments in big companies, you can be safe. However, this is not the case with some mid and small cap stocks. Large purchases can make a big difference in the prices of these stocks. This means that you need to watch your plans closely with large investments in medium and small stocks.
Should you sell your investments? Most investment experts believe that the best solution might be to wait for a clear picture. They think the fund house could provide more information. We can also hear Sebi. So, for now, you don’t have to rush to sell your investments.
However, when it comes to your future investments, opinions are divided. Most advisers believe that investors can hold back on their investments until there is clarity. Only a small number of advisors believe that investors should continue investing. They believe that internal checks and balances would ensure that the money is not safe.
