In such a situation, wealth managers advise investors to put their money in a mix of arbitrageliquidultra short-term funds, which are low-risk products and enjoy easy liquidity.
Stretched valuations with no earnings recovery have led to a sharp correction in stock markets over the past six days, with the Nifty losing close to 400 points. Amidst geopolitical tensions and fast-depreciating rupee, several mutual fund investors are not sure whether they should invest now or wait for the markets to stabilise.
In such a situation, wealth managers advise investors to put their money in a mix of arbitrage, liquid, ultra short-term funds, which are low-risk products and enjoy easy liquidity. Investors could earn anything between 6 per cent and 7 per cent in such products. “This also gives them the option to switch and average their equity-oriented funds as and when valuations get reasonable,“ says Rupesh Bhansali, head (distribution), GEPL Capital. Those with some risk appetite could look at investing a lumpsum amount in equity savings funds, which invest only a small portion of 20-40 per cent in equities, with a three-year time frame.
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