Are you not getting returns from your investments? What should be the strategy for investment? What should investors do if they are incurring losses and when should the profits be booked? What should be your plan to tide away the losses? Zee Business’ Swati Raina speaks to Hemant Rustagi, Chief Executive Officer (CEO) at Wiseinvest Private Limited to know what he thinks should be the way ahead.   

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What to do when markets fall?

Investors in Mutual Funds must continue investments.

Don’t make investment strategy based on the mood of the markets.

It will be counterproductive to stop investment in a falling market.

Long term investments remain unaffected from temporary rise on falls.

Continue SIP and get benefit from rupee cost averaging

Plan for uncertain markets.

Stick to investment plan as per the investment duration.

Distribute your goals in small, medium and long term duration.

Asset allocation should be on the basis of investment horizon

Long term investments are not affected much by uncertainties in markets

Rules of Portfolio rebalancing

Never indulge in rebalancing on every market change

Rebalance only when the set allocation changes

Try to do rebalancing at the time of maturity of the fund.

Do rebalancing when the debt-equity allocation gets disturbed

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Advice to Investors

Ajit Kumar, Jharkhand

Age – 33 years

Rs 11000 SIP allocation in 6 schemes

Goal of Rs 2 cr corpus at the end of retirement.

All funds are giving negative returns.

He asks if he should stay in the funds or exit?

Ajit’s Funds

SBI Smallcap Fund                  Rs 2500

Axis Bluechip Fund                 Rs 1500

Mirae Asset Emer. Bluechip    Rs 2000

Axis Midcap Fund                   Rs 2000

Canara Robeco Bluechip         Rs 1500

Parag Parikh Flexicap              Rs 1500

Advice to Ajit

His portfolio comprises of all categories of funds

Selected funds are good.

Put only one bluechip fund in your portfolio.

Increase investment in Parag Parikh Flexicap by Rs 2000

Never stop investment on fears of market falls

SIP will be beneficial at times of market tumults

Rupee cost averaging to benefit over long term

Over the next 25 years, Rs 11000 SIP will give returns of Rs 2 cr.