- In the last four days, the Sensex has lost about 3500 points.
- Fund valuation of mutual fund investors came down sharply
- Lump sum investment proves beneficial when invested for a long time
New Delhi. The Indian stock market is once again witnessing a severe decline. In the last four days, the Sensex has lost about 3500 points. Investors investing in shares have suffered a huge loss of about 21 lakh crores. Fund valuations of mutual fund investors have also come down sharply. Market experts are anticipating that the fall in the market will continue in the future as well. In such a situation, the big question is, what should mutual fund investors do?
Do not stop SIP, invest lump sum amount
Market experts say that mutual fund investors should not panic after seeing a big fall in the market. Keep your SIP on. If you stop the SIP, it is completely contrary to the basic principle of ‘Buy Low and Sell High’. This decision can put you at a loss. At the same time, if there is a big fall in the market and now experts are talking about recovery, then you can invest a lump sum amount. However, do not take this amount by taking a loan or taking it from anyone at all. If you have a large surplus amount, then invest it for the long term. Lump sum investment proves to be beneficial if you invest for a long time as you get the benefit of compounding on it. If you invest lumpsum in more than one mutual fund, you can reduce the risk and take advantage of the market rally.
Opportunity for new investors
Market experts say that the fall in the market also brings opportunities for new investors. The Sensex is about 5000 points below the record high ie 62000 points level. Further decline is expected in the coming days. New mutual fund investors can take advantage of this opportunity. If they start fresh investment now, they will get more unit allotments which will help in making huge profits later. Yes, always keep in mind that one should invest for a long period only.
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