In the past week, it was the first week that the Nifty closed in the green after five consecutive weeks of selling. The market is now down 11% from its peak in October and there is a huge bear market in all asset classes, not only in stocks but also in the crypto world. So what do we do in this fall in the market?
In this episode of “Smart Money”, Benaifer Malandkar, Chief Investment Officer at RAAY Global Investments, explains how to approach the markets after this massive fall.
Malandkar said, “The Systematic Investment Plan (SIP) is a very important part of asset allocation for most retail investors. Right now, when the markets actually offer an opportunity to enter at better levels or perhaps look for better investment entry points with a longer horizon in mind, I certainly think that not only maintaining the SIP is extremely important. But if there is money available, where you could allocate a little more, it would be absolutely prudent to increase SIP allocations at this point.
She added that investors should take a step back and sort of assess whether they are more satisfied with the risk-reward ratio of large-cap funds or mid-cap funds and “do a bit of analysis on what would give them , let’s say a moderate return over periods of time they’re looking to achieve, and then likely increase the allocation based on that understanding.”
Watch the video to learn more