As a result, even mutual funds have performed better with category average of equity diversified funds returning slightly over 8 per cent. So what should investors do given the fact that the meltdown in January is still too fresh in everybody's mind?
Gul Tekchandani, investment advisor, feels "Investors can start taking a medium-term view and look at good businesses, and not at the index." The basic idea is to continue with your investment plans whether the market is on the decline or rising.
Financial planner Kartik Jhaveri said that in a time like this it would be a good idea to shift the money from your loss-making mid-cap and small-cap stocks to large-caps. "Take a good three-four year perspective and start buying, but do not invest the entire corpus in a single day," said Jhaveri.
For investors who have entered the market through the mutual fund route, they should continue with their investments.
Hitungshu Debnath, executive director, wealth management systems, Angel Broking, said that the best way to invest now is through the systematic route. That is, continue with your systematic investment plans (SIPs) in mutual funds because it will help to average-out costs.
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"Also, if you are sitting on cash, it's the best time to invest the bulk into a liquid fund and then, move the money into an equity fund through the systematic transfer plan (STP)," added Debnath.
STPs are plans where investors can move their money from one fund to another on a monthly basis at NAV-based prices.