Sensex Down 9,500 Points: Should Mutual Fund Investors Hold or Exit?
The Sensex is down by 9,478 points from the September peak and is reaching the level of 76,499. Mutual fund experts say that investors can continue to invest in stocks in an even manner. They also suggest diversification across large-cap, mid-cap, and small-cap funds based on individual risk tolerance.
Hybrid funds should form part and parcel of the core portfolio because they can provide the flexibility to allocate assets. Investors can always opt to invest in consumption funds because they can recover from a lost consumption and, also, in the banking & financial services funds, considering the good balance of risk and reward currently offered.
The Sensex had reached an all-time high of 85,978 on September 27 but has since dipped to the level of 76,499 on Tuesday. In the last nine months, it has risen by approx. 2.81%. During the last calendar year, it delivered a return of approx. 5.15%. In the last month, however, Sensex has dropped by approx. 7.06%.
One of the mutual fund advisors suggests that the investment should be made for a period of 7-10 years. A combination of flexicap funds, index funds, and international funds would be recommended by making a strategy of regular investments through SIP or STP starting in 2025.
As per an expert, in the debt category, dynamic bond and gilt funds, equity-oriented hybrid funds, and multi-asset allocation funds may take center stage in 2025. The gold and silver funds may also come into prominence as investors look for a safer and better alternative.
