The top mutual fund official, Sundeep Sikka, Executive Director and CEO, Reliance Nippon Life Asset Management Ltd, advises MF investors to manage anticipations and cling to a long-term plan.
Investors follow the trend of moving away from investments when there is a change in the market. But, it is vital to stick to a plan instead of starting and stopping investments based on market levels. It is very important to continue investing based on a plan, he said.
According to him, the high net worth investors who invest in lump-sum are more susceptible to market volatility. The most significant change happens in the quality of assets. One of the major changes that have occurred in our country is in the quality of investors and in the quality of investments.
Mutual fund investment’s behaviors change over generations. Earlier 80 percent of the money was from lump-sum investment, whereas now about 33 percent of the money is coming from SIPs (Systematic Investment Plans), said by the top mutual fund official, Sundeep Sikka.
Also, in the past people believed that mutual fund investments were only for the rich investors. But, now the trend is changing and people are looking at mutual funds from a long-term point of view.
Sikka tells the investors to consider market volatility as their friend. He also recommends them to stay away from market flavors.
MF investments must be long-term and have to depend on a goal, and must not be timed based on conditions of the market. When it comes to goal-based planning, it is essential to stay in a plan.
The most powerful advice that Sundeep Sikka gives for new retail investors during “The Mutual Fund Show” is to choose fund managers and AMCs which have a track record of about 15 years to 20 years and have gone through different market cycles, reported by Bloomberg Quint.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]