Mutual fund investors, especially those who are new to participating in a mutual fund scheme, may be alarmed by the status of the stock market right now. Young investors may not have experienced this kind of market volatility, and it has made them wonder if they should stop investing in mutual funds and withdraw their money from the stock market. Making a hasty decision, though, could mean that the years of work you have put into saving will actually be for nothing.
Making an informed choice is essential to ensuring that your investments are successful and that you don't lose out on any of the market's advantages. It might be very difficult to handle the finances in a falling market. SIPs (systematic investment plans) appear to stop and redemptions seem to increase, both fairly prematurely, during volatile times. According to behavioural experts, investors experience losses more strongly than gains. When the markets enter a bear phase, people frequently cancel SIPS or redeem their investments to avoid suffering any further losses. But if you are a long-term investor, volatility is your friend.
Investing the SIP Way
To instil financial discipline through frequent investments is one of the main benefits of investing through the mutual fund SIP route. This fundamental goal is defeated if you stop your SIP in a declining market out of fear. Your wealth will decrease if you pause or stop your SIP, and you won't be able to reach any financial objectives you may have set for yourself. Avoiding market timing is a key factor in choosing the SIP method when investing in the equity markets.
Denne historien er fra November 07, 2022-utgaven av Dalal Street Investment Journal.
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Denne historien er fra November 07, 2022-utgaven av Dalal Street Investment Journal.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
