Sensex and Nifty are having a free fall and there seems to be no end to it. There are a lot of questions in everybody' mind . What will be the direction of crude oil prices??...Will the oil prices ever fall... Are we in a recession??. How's the US slump or recession going to affect the emerging economies....
Experts who predicted the sensex to go to 25,000 by year end are revising targets to 12500.!!!
The P/E of NIFTy has almost fallen to 16. No doubt that this is a tough to digest phase for retail investor.
Time and patience cures everything . All the retail investor needs to do is continue to SIP in a proven diversified equity fund ...Sit back and relax. Money invested during these chaotic times may be yielding the highest returns. But there is a caveat...If you do not have a long time horizon for investment ( at least 5 years ) , debts may definitely be a safer option. Banks and NBFCs have significantly increased the deposit rates.
You may also park your funds in Debt funds and once you see a clear picture start an STP to an equity fund.
Time and patience cures everything. So, all the evils that the market see today should be cured someday or the other.