Mutual funds in investment mediums are top-rated at the moment. Especially among the youth, there is a lot of attraction. Being less risky and comfortable than equity markets, people prefer to invest in it. In this digital age, we can find many youngsters around us to invest in mutual funds through mobile. But for any investment, according to the circumstances, it is very important to have a precise strategy. At present, the whole world is going through an economic crisis. The outbreak of the coronavirus has brought the global economy to the cusp of recession. Recently, the stock markets have seen a tremendous decline. Any new investor can be tempted by the declining market. It must be known here that the business recovery of corporates takes time. Nothing can be said about how long the stock markets will take to come to their old level. But it can be said that every rupee you invest at this time will definitely give attractive returns in the long run. Today, we are going to tell mutual fund investors some investment strategy according to the present time, let's know what it is.
Invest in pieces
Experts never recommend investing a large amount in equity together, because we don't know when the business would return to the track. The right way is for investors to make three or four parts of their investments and invest them alternately for the next few months.
Top up your SIP
If some of your SIP is running in equity funds, experts recommend that you top them up so that you can buy more units in less NAV.
Don't close existing SIP
If you can't top up your existing sipes, don't turn them off. In a time of uncertainty, which is right now, it is better to invest because you can buy at-risk assets at a lower price. When the circumstances become normal, the market will not be at the level of now. Therefore, the experts recommend that their existing SIP should continue at such times. According to the experts, you can get an outstanding return after five to seven years.
Don't be nervous
In times of uncertainty, it is mostly seen that investors are nervous, it can be the most inexorable situation for any investor. Being nervous at the current level can cause a lot of damage to your portfolio, as you will be able to sell at a much lower price at the moment.
Review asset allocation
In times of this uncertainty, the investor must review his asset allocation. If you have less exposure to equity, this is the right time to increase it. You may also think of transferring some amount from your existing fixed deposit or debt mutual fund to equity funds.
Invest through Systematic Transfer Plans
If you have a large amount of investment, you can put that amount in liquid or overnight funds. Transfer this amount to a large-cap or multi-cap fund for a period of six months or one year through systematic transfer plans (STP). You prefer large-cap funds as compared to small-cap funds, as large-cap stocks recover faster than small-cap stocks when the market recovers.
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