Use the fall to buy for the long term

Do not venture into markets for short-term gains

Several investors may be tempted to take advantage of the intraday volatility, where stocks move between 5-7 per cent in a single day, and venture into the markets for short-term gains. However, with the high level of uncertainty around and the likely impact of the gloomy global economic scenario on the markets, it would be wise to desist from such temptation.

Use the fall to accumulate for the long term

With the Indian equity markets turning attractive on the valuation front, it makes sense to invest for the long-term. Rather then pressing the panic button to sell, investors should utilise the fall to consolidate their holding into mutual funds or strong fundamental stocks. Do not adopt lumpsum investment as the ongoing volatility will offer better entering opportunity and hence adopt the staggered approach.

Do not stop systematic investment plans

When the markets fall there is no need to stop your systematic monthly investments in equities or mutual funds or to even sell your holding. When the NAV’s or share prices fall, you tend to accumulate more units for the same amount of investment and thus

... contd.