Experts: Weekly SIPs Could Help Weather Market Turmoil
Experts: Weekly SIPs Could Help Weather Market Turmoil
As markets wobble amid global tensions, experts weigh weekly SIPs and STPs as safer bets to ride volatility without risking big bets.
In a year where Sensex and Nifty have fallen about 13% amid tariff announcements and rising tensions in the Middle East, investors are feeling the heat on Dalal Street. With market headlines driving volatility, one veteran fund manager says the best stance is patience: maintain your asset allocation and avoid knee-jerk moves. The idea is to ride out the turbulence rather than time the market, keeping a steady course in a crisis.
For those who want to try to navigate the volatility tactically, weekly SIPs or systematic transfer plans can be considered in small portions. Young investors with higher risk appetite may opt for weekly transfers into overnight funds, liquid funds, or arbitrage funds and switch as conditions change. The caveat is clear: avoid infusing a large chunk of money into such schemes; small sums or a minor topping up can be acceptable for risk-tolerant investors during turmoil.
Looking ahead, the path for the market will depend on how long the crisis lasts. If tensions ease quickly, the market could bottom out and recover irrespective of current valuations. If the crisis drags on and oil stays above $100 a barrel for an extended period, earnings disruptions could set in, potentially leading to a slow grind downwards from current levels.
Bottom line: a disciplined approach with cautious tactical moves may help weather the storm, but investors should align actions with risk tolerance and time horizon, avoiding aggressive bets during an unsettled period.
