Fund managers, investors must not stop their Systematic Investment Plans or SIPs in uncertain times.
They should do so only when they need money, not otherwise.
The years before have rewarded investors well. However, there should not be any question of stopping SIP till one needs the money. Markets will be more volatile in nature but one must continue with the discipline of investing through SIP mode.
For new investors, we recommend investing in dynamic asset allocation schemes. Those who want to participate in diversified equity schemes could consider large-cap oriented schemes.
Historically, small investors tend to stop their investments during bad or volatile times. And, unfortunately, they come back when the markets trade at highs.
MONEY TIPS
The source for concern among fund managers emerges from the fact that parameters such as the capex cycle, credit growth and capacity utilization are yet to improve.
As uncertainty from global events cannot be ruled out and earnings recovery remaining patchy, they expect market volalatility in the near term.
Further, mid-cap and small-cap schemes are a clear no from fund managers if one's investment horizon is less than three years.
But, if appetite for risk taking is high, one could look at such schemes even at current times, provided the investment horizon is nowhere less than three to five years.
India
NRI
