mutual funds: The Indian stock market registered a strong recovery on Friday after a strong beating over the past fortnight, indicating a move out of base building mode. In such a scenario, short term mutual fund investors have an opportunity to cash-in through lumpsum investment for a couple of years in hybrid equity funds as they can outperform traditional debt funds by around one per cent in one to two years time. perform. He said timing the market is difficult and hence one should invest in two to three tranches to average out one’s NAV (net asset value), in case the rebound turns out to be a relief rally only. For a long-term investor, mutual fund investors can also get additional NAV by increasing the monthly SIP during a market downturn.
speaking out mutual fund investment Speaking about the strategy during the stock market rebound, Pankaj Mathpal, MD & CEO, Optima Money Managers said, “In the stock market rebound on Friday after around 8-10 sessions, short term mutual fund investors may slightly increase their time horizon and want to invest in hybrid equity fund It has outperformed debt funds over one to two year time horizon. Debt Fund Comparison.
On how a long term investor can maximize during stock market rebound, SEBI registered tax and investment expert Jitendra Solanki said, “It is difficult to time the market during a volatile market, but in case of a sustained fall, one Long Term mutual fund An investor can increase his monthly SIP to get higher NAV during a fall in the stock market or after a continuous fall in the last fortnight. This will help them get more value for their money till the time the market comes under the control of the bulls.”
SK Hojefa, CEO, TradePlus said, “During volatile markets, it is necessary to focus on building a diversified portfolio of mutual funds that can provide a buffer against market volatility. Index-based Large, Mid and a mix of small-cap funds is best for most investors. Index-based funds aim to replicate the performance of a particular market index, such as smelly 50 or BSE Sensex. These funds are a low-cost way to invest in the stock market and have a proven track record of delivering consistent returns over the long term.”
Advocating regular review of one’s portfolio, SK Hojefa said, “It is also important to regularly review and adjust your portfolio to ensure that it remains in line with your goals and risk tolerance. Rebalancing can help you maintain diversification and manage risk, while also taking advantage of opportunities as the market arises.”
Disclaimer: The views and recommendations above are those of individual analysts or personal finance companies and not Mint’s. We advise investors to do due diligence with certified experts before making any investment decision.
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