Free fall market: Stock markets in India and abroad have fallen considerably in recent days due to the announcement of US President Donald Trump about imposing mutual rates for its trading partners. The US government has announced a rate of 27 percent for imports from India.
On Friday the Sesex closed 1.22 percent lower, while the Nifty 50 ended with a loss of 1.49 percent. The Benchmark Nifty 50 -Index is almost 12.8 percent lower than its peak of 26,277, which it achieved on September 27 last year.
Is this therefore the right time to stop your systematic investment plans (SIPs)? We have spoken with some market experts and this is what they have to say.
Market waste: 4 important money lessons
Continue with your sips: Wealth advisers say that investors must continue their monthly contribution to investment investments through systematic investment plans (SIPs), regardless of the market fall. Preeti Zende, founder of APNA DHAN Financial Services, says that the fall in stock prices should not be a reason to pause the SIPs.
“If you invest in Equity investment funds in the direction of your long-term goals, this is the best time to continue your SIPs to get more units in market correction. This helps you to increase the portfolio value as soon as the market starts to recover,” says Zende.
Funds to invest: Experts believe that investors should invest in hybrid funds and funds with large caps to prevent considerable volatility in their portfolios. “Investors must invest in funds with large caps and multi-cap. Even if someone wants to invest in a thematic fund, they can explore bank and financial services as a sector,” says Sridharan Sundaram, founder of Wealth Ladder Direct.
Ca Deepak Gupta, founder of FinvestmentPro, says that retail investors have to consider balanced advantage funds, multi-asset funds and investment funds with large caps, because these categories offer diversification, stability and growth in the long term.
Patience is the key: Another timeless advice from advisory advisers to investors to be patient and to take a long -term vision on the market. “Investors have to look at the long -term growth of their portfolio, and they can even put more money in the market if they want to keep investing in the next 3 to 5 years,” Sundaram adds.
The right moment for redistribution of assets: He also emphasizes that steep market correction is the right time for redistribution of assets. “If the equity / debt ratio is 70-30 and after the fall in the market, it has changed to 60-40, then it is the right time for investors to reclaim this ratio to 70-30,” sundaram explains.
Remark: This story is only for informative purposes. Talk to an investment adviser registered by SEBI before you make an investment -related decision.
