Despite Volatility, Stay Invested

When it comes to the stock market, equity mutual funds have turned quite optimistic as they were net buyers in the month of October 2022. According to available data, domestic institutional investors (DIIs) bought shares worth Rs 9,276.97 crore. This was despite foreign institutional investors (FII) continuing to sell for second straight month. As an equity MF investor all you have to do is select the best possible fund and stick to your financial plan without worrying about the market fall. Our cover story explains with the help of data and empirical evidence why it is important to remain invested and not stop your SIPs during falling markets. 

Timing the SIPs is absolutely wrong. I sincerely hope our cover story helps you choose the right direction when it comes to SIPs. In our special story we have explained the importance of sequencing risk which typically tends to affect the retirement cash flows. I am sure the message in the story will be of value addition to you all. In another special story, we have explained everything that you need to know about contra funds. It also answers whether it is the right time to invest in them.

While making any investment decision it is important to think of your investment objective, investment horizon and your risk appetite. Although the equities seem to be volatile at the moment, in the long term they tend to generate better inflation-adjusted returns. However, it is equally important to have some portion allocated to debt mutual funds as they would provide a good support to your portfolio during the phases of declining markets. All in all, I would strongly recommend investors to invest via the SIP route as over the longer period it helps in creating sustainable wealth. Happy investing!

Yogesh Supekar
Executive Editor