Mutual Funds: Should you stop or pause investing when markets hit all-time highs? 3 experts answer
stock market is undeniably sparking enthusiasm, as investors eagerly anticipate additional gains in the upcoming days. While the delight of profiting from the market is clear and tangible, it is crucial to approach this optimism with a prudent perspective. Favourable economic data releases, such as robust job figures or enhanced GDP growth, have the potential to bolster investor confidence and elevate market sentiment.
There is optimism that the upcoming interim budget will tackle pertinent issues related to taxation and credit accessibility. Numerous companies have disclosed impressive earnings, thereby substantiating elevated valuations and increased stock prices. Amidst this euphoria stemming from an economy that continues to defy macroeconomic factors and show resilience, numerous investors are becoming anxious, contemplating whether to halt their systematic investment plan (SIP) contributions or postpone lump sum investments altogether.
This is a question that cannot and must not be responded to without due consideration. There is a need to look at it objectively considering how many investors are driven by unwanted fears and paranoia into stopping or delaying their investments. A tête with some personal financial advisors reveals why discontinuing or delaying investments offers no advantage.
Succumbing to market hype has proven more detrimental than beneficial, with even those who claim to be long-term investors rushing to secure profits from their mutual funds. Typically, it is not advisable to halt your SIPs during market peaks. Do you understand why? Rishabh Parakh, Chief Play Officer, NRP Capitals explains, “SIPs must not be stopped given the market highs and should only be stopped in case there is a change of
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