Neeraj Gaurh of Axis Securities advises investors to balance market excitement with geopolitical risks. Markets may correct 5-8%, but investors can deploy lump sum investments in good stock ideas when they have valuation comfort, when growth is accelerating, or when RoEs are improving.. Cyclicals are driving earnings growth, and banking underperformance may reverse when liquidity conditions improve.
SIPs have gained popularity as an investment option for valid reasons. Their capability to mitigate market risk and offset losses through rupee-cost averaging is a significant advantage.
Instead of completely stopping mutual fund investments, investors can reduce their SIP or lump-sum amounts and diversify their portfolio to include safer assets like debt funds or gold.
The significance of whether the wealthy save more is inconsequential. The pivotal question persists: Do you opt to save and invest, or do you prefer to dissipate your hard-earned money akin to your economically uninformed counterparts?
Simplifying your investments involves aligning them with your financial goals. The process of streamlining your investment portfolio can be time-consuming, as it requires several steps to initially declutter and subsequently consolidate your mutual fund holdings.