May month has approached with the heat waves all over! It seems that the sun is on its highest heat peak. Similarly, the Equity Market is touching new highs.
The stock market is known for its volatility & that is the reason some people are jittery with the thought of investing in equity. With the stock market hitting a new all-time high, confusion among investors has also hit a new peak!
Some people might be excited with the rising market whereas some may be scared of a crash. Here are some tips which will help you when the market is high.
- Invest through SIP’s
Systematic Investment Plan is the best way to invest in Equity. SIPs don’t expose your funds to market volatility all at once. With SIPs your risks gets divided because you enter the market with a new NAV every month. This diversifies your risks & gives you stable returns.
- Opt for Systematic Transfer Plan Route
For an investor, looking for a lump sum investment ‘Systematic Transfer Plan’ is bliss. It provides the facility of transferring a fixed amount to equity from debt fund of the same fund house at regular intervals.
For instance: If you have 10 lakhs to invest, you can put the lump sum amount in any Debt Scheme and then transfer 1 lakh every month to the Equity Fund. This helps you to avoid the risks associated with entering in one stroke. Also, the investors can earn higher returns than the savings account on debt schemes.
- Review your Portfolio
This could be the time to review your portfolio. Equities need 3-5 years of span to perform thus evaluate the funds in a long time horizon. Remove the consistent under performers from your portfolio.
The uptrend is still going to continue…the equity market is meant to earn returns for you so don’t get carried away! The sun and the market, both are high & we have to cope up with it!