Which Mutual Fund should you buy in market correction

The Indian stock market has fallen by about 5% each Sensex & Nifty in past one week. All this while you if you have understood the market dynamics, waiting to invest at lower market levels then this is the opportunity to invest.

But wait! Before making any investment you should to make sure that your asset allocation strategy is based on your risk profile as market volatility affects your asset allocation.

Since the correction is across the market-cap, you should consider investing in broad-based fund. It might happen that your portfolio is only composed of small cap or midcap funds. In a market correction phase a concentrated portfolio might increase the chances of loss. So you should diversify your portfolio across the different categories like large cap, midcap, small cap etc with high quality funds to avoid loss during market volatility.

*Data as on 28^th January, 2022

If you are a first time investor, trading in the stock market can be tricky. So you can go with Systematic Investment plan (SIP) in equity mutual funds which will give you similar investment experience although with greater diversification where you will be investing smaller amounts in consistent manner and gradually over a period it will give you the advantage of rupee cost averaging. http://giisfinancial.com/index.html#power-sip

The first-time investors willing to invest in one go should enter market with balanced adavantage funds as this scheme can form the core part of your asset allocation and protect the downside during the market correction.

Thus, markets highs and lows will come and go. However, you should make investment decisions keeping your risk tolerance and time horizon in mind. Stay invested through market cycles!

To know more 

You can also use GIIS Financial tools or Our Android App  for Investment, tracking and Asset allocation planning. 

*Mutual Fund Investments are subject to market risk, read all scheme related documents carefully.

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