Ashwini Shami sees general elections as a low probability but high-impact event on the negative side in the short run.
Ashwini Shami, Executive Vice President and Portfolio Manager and Co-Founder, OmniScience Capital feels that the results of the general election are a low probability but high-impact risk factor for the markets.
While the market is currently pricing a stable government at the Centre, investors should be prepared to go through occasional episodes of high volatility until the first week of June, he said.
At OmniScience, they do not expect a big surprise in the election results and see these volatility events as good buying opportunities for long-term investors who are allocating capital with a positive outlook on the Indian economy, said Shami who has spent more than 20 years in the financial services industry.