Wednesday, 20 March 2013

Navigate the choppy markets in a disciplined manner

Don’t let the recent volatility in the stock market affect your equity investments. You should invest in stocks and mutual funds with a long-term goal of at least 5 years or more. Secondly you should adopt a disciplined approach such as a SIP especially since the equity markets have been volatile. A systematic investment will save you the effort of timing the market. SIP also ensures that you will buy the stocks/MF units at high prices as well as low prices, thereby lowering the average purchase price of the investment. Investors who discontinued their SIPs in the past 2 years would definitely feel the pinch as they missed an opportunity to gain from the last rally. Lastly equity investments beat inflation on a long-term basis.

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