As optimism turns to caution in stock markets, what should retail investors do now?
The greater the volatility in the markets, the higher is the need to stick to investing doctrines. Time and again — wealth advisors suggest investors to maintain a long-term vision and not get carried away with the wild swings. Regardless of all this, the sharp swings do send investors into a tizzy.
As a result of the FIIs (Foreign Institutional Investors) selling last week, Indian markets saw a downswing, albeit the broader benchmark index recovered 1.01 percent on Friday. FIIs remained net sellers in October 2023 as they sold Indian stocks amounting to near ₹2,600 crore till October 27 — the highest since January this year.
We spoke to a few investment advisors to dwell deeper into it and find out what lies ahead in the financial markets.
“The market has corrected 4-5 percent already but there is a lot of volatility ahead in view of inflation, global risks and forthcoming elections in the five Assemblies. So, investors should invest only 15 percent of their investible corpus as of now, and invest the remaining 85 percent after the dust has settled," says Sridharan S., a Sebi-registered investment advisor and Co-founder of Wealth Ladder Direct.
“Investors can look at the large and mid-cap funds," he adds.
Ravi Saraogi, Co-founder,Samasthiti Advisors, says that he has not stopped investors from investing.
“Those who are investing for the long term should continue to invest and ignore this volatility. But those who have large amounts of money to invest can keep their money in liquid and money market funds and invest when there is a good opportunity," he says.
He further adds that the volatility, so far, has led to market correcting only by 5-6 percent.
“This is not called correction per se. But since the investors
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