Indian equity market has been witnessing quite a bit of volatility in the past few days. For investors, navigating volatile markets and its impact on investments, can be a little confusing.
In this episode of Invest Smart, Hemant Rustagi, CEO - Wiseinvest shares his opinion on how investors can navigate the market volatility and manage their investments.
First and foremost, Rustagi advices investors to tone down their expectations as the share markets can't give 'extraordinary returns' like it did in 2023, every year. However, he also points out that there is no need for the investors to worry yet, as the volatility has been going on only for a few days now.
He goes on to say that the prospects of share markets are promising given the possible rate cuts by the RBI and the money flow into the Indian economy.
"With the fundamentals improving, with liquidity in the market, I think the prospects of markets look still very promising", says Hemant Rustagi.
For investors, Rustagi has an important advice of investment in small, mid and large caps in the right proportion. Deciding the right proportion depends on experience, level of equity understanding and the size of portfolio, notes Rustagi.
For those who invested more in the small and mid cap trying to take advantage of the good run the segments had last year, Rustagi suggests re-balancing the portfolio.
On SIP investment, Rustagi mentioned that though the volatility could be unnerving for an investor, SIPs allow investment at different levels, tackling ups and down.
Rustagi recommends investment in multi-cap funds as it covers all the three segments (small, mid and large cap) of the market. Through this fund, a minimum of 25% is invested in all the segments and the other 25% is invested as per the discretion of the fund manager.
The second recommendation from Rustagi is investment in large and mid cap. Finally he recommends, investment in flexicap fund for beginners.
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