Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Interesting Articles

| More

How can investors preserve their wealth during times of crisis

Posted On: 2020-06-16 23:12:17 (Time Zone: IST)

Mr D P Singh, ED & CMO, SBI Mutual Fund

It is said that half knowledge is more dangerous than ignorance. This truism holds true today when you see the amount of misinformation floating around as genuine advice in the wake of the COVID-19 pandemic and the stock market crash. While the advice is well-meaning, there is always a chance that it is only half-true or worse, completely wrong.

Going by the current trend in the market, it is encouraging to know that there is a section of investors who are unperturbed by market volatility and on the contrary see these market movements as an opportunity. Mutual funds saw net inflows into equity and equity-related schemes of over INR 6,212 crore, as multicap, large cap and mid cap funds witnessed higher inflows, and monthly SIP flows at a high of INR 8,376 crore as of April 2020.

This is because the retail investor has evolved over time. They have become more aware of the causes of market volatility, and what they must and must not do during those phases. However, there is a sizeable section of the investors who still panic and get affected by all the noise around them.

Stay with or add more investments

It is a given that markets will move up over the long-term and SIP is one of the most efficient ways of breezing through such volatile times. Light on the pocket, an SIP will help you continue with your investments and pick up higher units at a lower NAV. The benefit of higher number of units will be experienced when markets start to move up again.

Investors who have SIPs to their names should not panic and stop their SIPs.

For investors whose SIPs are about to expire in the coming months, it's an opportune time for them to consider taking advantage of the market lows by continuing their investments; adding new ones or choose a top up in their existing scheme.

For investors who have some liquidity at hand, lumpsum investments could be considered at these levels. New investors should not try to time the market to look for a more favourable time to start investing. The right time to start investing is now and investors could choose mutual funds as the preferred vehicle to benefit from portfolio diversification in a staggered manner. Additionally, stock prices currently are extremely volatile and finding a suitable investment may be time-consuming and confusing. So, leave it to the experts at mutual fund houses to make appropriate investment decisions for you.

The volatility we are seeing today will seem like a small hiccup over the long-term. Instead of running away, investors should ride alongside it and over the next decade, experience the benefits of their patience and resilience. Thus, we urge investors to avoid taking a U -Turn on their goals and treat this time as their turn to stay invested.

Click here to send ur comments or to

Other Headlines:

Electricity (Amendment) Bill 2021 - A Review - Balaji Vaidyanath and Devang Patel

Tips to save Income tax in FY 2021-22

NPS Growing at Decent Pace, Performed Well Even During Pandemic Period: PFRDA Chairman

The Yamuna Syndicate Limited acquires 20,000 shares of ISGEC Heavy Engineering Ltd from open market

Decoding: Pledging of shares and upfront margins in the cash market!

SIDBI joins hands with Govt. of Rajasthan for the development of MSME ecosystem in the State

Are promoters using rights issue to increase their stake in the company?

All you want to know about Rights Entitlement

45% of the customers have taken moratorium PAN India; more observed in the northern region of the country: Finway

DISCOM dues balloon to ₹1.199 trillion

TNPL recommends dividend of Rs. 6 - Dividend Yield @ 5.45%

HUDCO - Rs. 2.35 dividend recommended - Dividend Yield @ 7.01%

PTC India Ltd - Rs. 5.50 dividend recommended - Dividend Yield @ 11.46%

PNB Gilts Ltd - Rs. 3 dividend recommended - Dividend Yield @ 8.57%

How to apply for Rights Issue of Arvind Fashions Limited?

How to apply for Rights Issue of Aditya Birla Fashion and Retail Limited?

An insight on Aarti Surfactants Limited

Covid-19 and its impact on businesses

Nifty Gained 8% in the June Series, Bank Nifty Surged 12%-Highest Since March 19 - HDFC Securities

IMF Growth Revision for India - Acuité Ratings & Research

Co-operative Banks - RBI Supervision - Acuité Ratings & Research

HDFC Securities views on relaxations announced by SEBI

India can reduce China trade deficit by over $8 billion in FY21-22 - Acuité Ratings & Research

JM Financial Yield Enhancer (Distressed Opportunity) Fund I raises Rs.160 crore in its first close

Samco Securities launches BTPT - Buy Today, Pay In Two days for Investors Buying Stocks

No data breach of BHIM app: Report

India's sovereign rating downgrade by Moody's - Acuité Ratings & Research

Banking Sector Credit Trends - Unusual trends - HDFC Securities

Rollover Report for May - June 2020: Angel Broking

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research on Q4 GDP

Mr. Dhiraj Relli views on GDP Numbers - HDFC Securities

Banking Sector Update - NIM compression on the cards - HDFC Securities

May series ends with a bang: Angel Broking

May 2020 F&O Series Expiry - Mr. Nandish Shah, Technical Research Analyst, HDFC Securities

Views on Impact of Locusts Attack on Agriculture - Acuité Ratings & Research

ICAI establishes Center for Audit Quality

Bharti Telecom raised over Rs. 8433 crores through Accelerated Book-build offering of equity shares of Bharti Airtel

SATYA MicroCapital raises INR 105 crore equity funding from Japan-based Gojo & Company Inc.

Mr. Rajnish Kumar, Chairman, SBI & IBA on the announcements made by RBI today

Views of Mr. Umesh Revankar, MD and CEO, Shriram Transport Finance on RBI announcement

Views of Mr. George Alexander Muthoot, MD, Muthoot Finance on RBI announcement today

Views of Ms. Anagha Deodhar - Economist, ICICI Securities on the RBI announcement today

Views on RBI Policy announcement today - Federal Bank

RBI Monetary Policy (May 2020) by Shanti Ekambaram, Group President - Consumer Banking, Kotak Mahindra Bank

Religare Finvest Ltd. on today's monetary policy by RBI

RBI monetary policy announcement - Mr. Jyoti Roy, DVP Equity Strategist, Angel Broking Ltd

RBI's proactive measure will help revive economy: Dr.Niranjan Hiranandani

Mr. Dhiraj Relli views on today's announcement made by RBI

Views of Mr. R K Gurumurthy, Head - Treasury, Lakshmi Vilas Bank on the RBI announcement today

Suvodeep Rakshit, Vice President & Sr. Economist, Kotak Institutional Equities on RBI announcement

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020