MARKET CORRECTION: Go for value funds, continue SIPs

financialexpress.com:

As the benchmark indices are down nearly 7% from mid-September peaks on the back of relentless selling by foreign portfolio investors, rising US Treasury yields and the Israel-Hamas conflict, retail investors must take note that every correction is a great opportunity to buy quality stocks at reasonable price for long-term gains. Market corrections are ideal for rebalancing the portfolio, going for value funds, looking at a multi-asset strategy and staying invested in their planned equity investments.

Harshad Chetanwala, co-founder, MyWealthGrowth.com, says volatility is a part of stock market investment and patience is the key for investors during these times. “It is nearly a 5% fall over the last two weeks and further volatility can be used by investors to add more if they have a surplus. Panicking at present may not work in the interest of investors. Occasions like these can help you invest at the corrected prices,” he says.

Investors must keep in mind that timing the entry in equity investments is an impossible task. Instead, they must buy in dips. Sushil Jain, CEO, PersonalCFO.in, a wealth management firm, the market correction is a good opportunity for investors to follow asset allocation. “Investors should gradually increase equity exposure based on their asset allocation in every 5% correction. They should continue their investments in large- and mid-cap stocks.”

Similarly Siddhartha Khemka, head, Retail Research, Motilal Oswal Financial Services, says given the global uncertainties, there could be higher volatility in the near term giving long-term investors an opportunity to accumulate quality stocks at lower levels. “We suggest making higher allocation towards large caps as valuations are comfortable along