Buying on dips and selling on highs constitutes the very basic principle of making profits on investments. However, pundits also try to dissuade every investor from attempting to time the market. In the midst of these conflicting currents, the crash in the Indian markets after a spectacular bull run could allow investors to pick up some mutual funds at a slightly lower NAV.
Great opportunity to buy Mutual Funds
Speaking to news9live.com investment strategist and director, Wishlist Capital, said, “Mutual funds can create long-term value. Having said that given yesterday’s (August 5) developments and the way the market backtracked, I would like to point out that there is a great opportunity for longer term investors to buy.”
Dey feels that there are opportunities to pick up good funds in the market right now. “Opportunities arise when the market is down and valuations are low. That has actually happened now,” Dey asserted.
Back to June last week levels
In fact, on August 5, Sensex 30 closed at 78,768.42 (down 2,223 points) while Nifty 50 ended at 24,055 (down 662 points). This was a level where the indices were in the last week of June this year. This surrenduring of gains can be utilised by quickly capitalising on the dip.
“I must say that mutual funds are the right vehicle for the masses to create wealth. So, go buy and invest your surplus in the right funds. Pick the right fund manager and you will gain a lot,” said Nilanjan Dey.
Don’t exit on impulse
Experts maintain that exiting a mutual fund just after a few days of volatility or dip might not be the appropriate decision. Mutual funds, especially equity funds are regarded as long time investments which provide significant returns in a horizon of several years.
One point to remember is that while systematic investment plans (SIP) in mutual funds is becoming hugely popular due to the benefits of rupee cost averaging, a dip is always a good time to lock in lower NAVs for lump sum investments in any fund.
This could also be a good point to start a SIP journey and continue it for a long term.
(Disclaimer: This article is only meant to provide information. News9live.com does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
Investment experts always advise not to try to time the market. However, the dip on August 5 has offered an opportunity to pick up good funds. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
