Nifty50 is at 10,000 Mark! Still Hoping for the Opportunities?
On July 25, 2017, Nifty50 reached the 10,000 for the first time in the opening trade and witnessed a hike in prices of various entities giving investors an amazing opportunity to book profits. Being a mutual fund investor what should be your approach in such a rising market, know here!
Although the Nifty50 indices have shown such a tremendous hike in the market, some investors are still hoping for a correction and waiting for the better opportunities. The advisors have noticed that after such a raise, the mutual fund investors are pulling their money out from the schemes to reinvest the same at the time of corrections. But, this isn’t a right decision at all. It has always been recommended that the investors should never try to time the market in the case of mutual fund investment. Moreover, keeping the funds idle while waiting for the correction to happen is not at all a good idea in any respect.
The mutual fund advisors often advice the investors to never fall into the trap of timing the market, i.e., buying at low and selling at high; as it is a proven fact that nobody can time the market over the long term in mutual funds. However, still, there are many investors who believe that they can do it anyways.
The news and buzz about the likely correction in the upcoming scenario have lead many investors get into selling off their investments in the present scenario, but they have failed to understand that it won’t be helpful to them in the future. Keeping the money idle is simply a vacuous task as no one can predict the exact time when the market will be showing corrections. By taking out the money, they are probably missing out the daily rally of the market which adds up to the worth of their invested capital. Instead of redeeming the funds in a hurry, it’s better to stay calm and think properly before acting.
Taking such tactical calls is beneficial only if you have adequate knowledge of the market happenings, and understand the entire functioning of the trends. Going by what people are saying, and pulling the funds from a rich portfolio just to take a small advantage of correction leads to disadvantages.
Mutual fund is the investment programme for those investors who leave the job of managing their funds to the fund managers and do trust that they will be able to fetch maximum growth and returns from the market. You should just keep a track on the worth of your investments, and rest everything on the fund manager of the schemes which you hold.
When the market is at a hike, you must never be over-cautious or adventurous about your money. Pulling the money out of the fund in the hope of a correction which may occur in one month, six months, or even a year later is a bad idea. Hence, you should simply be attentive and enjoy the profit bookings. The values which your scheme fetches at such points help you in attaining your goals even before the maturity. So think smartly.
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