See this fall as an opportunity.
If you are a long term investor then there is no need to panic about the market downturn. This is one occasion where top-up SIP is recommended. You will get the benefit of this in the form of multi-time returns in the long term.
At present the stock market (Share market updates) has a great deal of volatility. Selling pressure is being seen on the stocks of every sector. Investors are worried about this movement of the market. However, financial experts advise that there is no need to panic. Such ups and downs are normal in the market. If you are a retail investor (Retail investors) and are unable to understand this trend of the market, then invest in the market through mutual funds. Investing in Mutual Funds every month with the help of SIP (Mutual fund investmentBy doing this, you will get the benefit of the downfall of the market and the loss will be less in the boom. As an investor, if you do SIP for a long period, then there is every possibility of getting multibagger returns.
SIP is such an investment tool that strengthens your portfolio during the downturn, which will benefit in the long run. However, take this decision seriously in which category of mutual funds and in which scheme one should do SIP. If you have chosen the right fund and the right scheme for the long term, then there is no need to panic about the downturn in the market. When the price of the unit falls due to a fall in the market, it can be topped-up.
Fall is a golden opportunity for investment
Talking to ET Now Swadesh, Deven R Choksi of KR Choksi said that the market fall is the best opportunity for investors to invest. Choksi said that in the next 10-15 years, the Indian stock market can grow up to 3 times. In such a situation, if you invest continuously for such a period, then the returns will be excellent. In between, when there is a huge decline in the market, then top-up SIP would be the right strategy.
Different sectors will perform differently
Sunil Subramaniam of Sundaram AMC says that the performance of different sectors will be different in the coming 10-15 years. In such a situation, it is important to choose the right sector. The second important thing is that India will still grow at the rate of 7-8 percent. In such a situation, investing in domestic based funds is likely to give higher returns because the future of the Indian economy is bright in the long term. If unable to select specific sectors then multi cap funds or flexi cap funds can be opted for.
It is important to choose the right category of fund
It is advisable for the new investors to clear their perspective and choose the right category before choosing the fund for themselves. After choosing the right category, choosing good funds of that category is the right way to invest. If you are going to invest for the first time then opt for large cap funds as the risk is very less here. The returns may be less but it does you very little loss. As your investments grow, your portfolio will expand.
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