{"id":204887,"date":"2024-12-30T22:59:38","date_gmt":"2024-12-30T22:59:38","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/12\/30\/stock-rally-derailed-this-year-but-stay-invested-through-highs-lows-times-of-india\/"},"modified":"2024-12-30T22:59:38","modified_gmt":"2024-12-30T22:59:38","slug":"stock-rally-derailed-this-year-but-stay-invested-through-highs-lows-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/12\/30\/stock-rally-derailed-this-year-but-stay-invested-through-highs-lows-times-of-india\/","title":{"rendered":"Stock rally derailed this year… but stay invested through highs & lows – Times of India"},"content":{"rendered":"
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MUMBAI: After touching record highs several times in 2024, the sensex and Nifty are about 10% off peak levels as several global and domestic factors weigh on investor sentiment. Debt and precious metals – gold and silver – markets too have been volatile. The markets’ direction is not clear – so investors should beware of giving in to impulse while making investment decisions. Such calls could impact long-term gains.
The proven prescription for creating wealth in the long run is the process of allocating one’s investments into three popular asset classes: equity, fixed income, and gold & silver.
Investors should keep in mind three things. First, with a proper asset allocation framework, set investment goals. They should also set a timeline. And then they should invest using SIPs, a mutual fund distributor said.
Investment advisers expect the economy to struggle for the next few quarters – by extension a stock market rally may not be imminent, as Main Street & Dalal Street performances are closely linked. And as it happens in times of a subdued market, small and mid-cap stocks are expected to underperform while large-caps may prove resilient.<\/p>\n

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“Retail investors would do better if they stick to large-cap and flexi-cap funds. Conservative investors could look at debt-oriented balanced advantage funds. The third category to look at in these times would be the multi-asset funds,” Tanwir Alam of Fincart Finvest said.
While large-cap funds invest only in blue chips and the leading companies, flexi-cap has a mix-and-match approach that invests across the market cap spectrum. Balanced advantage funds are schemes that try to balance their investment approach between debt and equity, depending upon the expectations about these assets. Meanwhile, multi-asset funds predominantly invest in equity and debt, but also maintain some exposure to gold.
With the rupee showing weakness against the dollar and other major currencies, domestic gold prices are going up (due to link to international prices benchmarked to dollar). This is bringing in some extra profits for multi-asset funds.
Alam also had another advice for retail investors: Don’t stop your SIPs. The logic is that foreign funds are taking money out of India which, to some extent, is pulling the markets down and also leading to weakness of the rupee. “In case foreign funds decide to come in and start investing in India in a big way, there would be a smart rally in the stock market. In case you stop your SIP, you could miss a substantial part of the rally.”<\/div>\n