Money Guru: How to plan investment in an uncertain market? When is the right time to make a new investment?

Money Guru: The market continues to be volatile. The decline may also be seen in many funds. So where to invest in an uncertain market? What is the right time to invest new money? Loss in investment, what is the plan? The expert Hemant Rustagi, CEO of WiseInvest Pvt Ltd. explained this in a popular TV Show Money Guru.

The expert Rustagi said that there may be negative returns in the portfolio in the short term but stopping/selling the investment in the falling market will definitely lead to losses. So, keep investing according to the target.

Negative Return Tension
The expert said market movements have a different effect on each category. Midcap will be more volatile in a downtrend in the market. Opposite to it, large-cap funds are less affected by volatile markets. It is very important to have the right mix of asset classes in the portfolio because it makes it easier to balance risk with the right category allocation.

When to withdraw from a fund?
The CEO said if the fund continues to fall below its benchmark, it is better to exit from that fund. Book a profit when the target is met. Apart from this, one can withdraw from the fund even after changing the allocation. Do not exit the fund on the poor performance of previous years, he said. Also do not get carried away by the short-term volatility of the market, he added.

Where to make new investment?
Always invest in the market according to the goal, the expert Rustagi suggested and said be sure to diversify into new investments. Exposure to different market segments is also essential, he added. Invest in large-cap, mid-cap, and flexi cap.

Hemant Rustagi's Opinion
Kotak Equity Opp. Fund
ICICI Pru. Large&Midcap Fund
PGIM Flexi cap Fund
UTI Flexi Cap Fund

Low-risk Investment
The CEO of WiseInvest Pvt Ltd said to invest in Balanced Advantage Fund (BAF) for a low-risk investment. He said it gives better returns with less risk. In this, money is invested in equity and debt. Invest 30-80% in equities.
It is possible to vary the allocation between equity-debt. Funds invest more money in bonds when the price of shares rises.
If the price falls, one can withdraw money from bonds and invest in shares.

Hemant Rustagi's Opinion
ICICI Pru.BAF
Kotak BAF
Nippon BAF