Nifty @ 23343 ( at the time of writing) 3rd February 2025
Indian markets have been choppy and turbulent lately.
The correction which started with Nifty in October 2024 has spread slowly and gradually to all parts of markets and currently there is no place to hide as everything is down.
January month performance of different indices have been as below-
The only thing which comes to investors mind is what to do in the current market scenario.
Well , seasoned investors who have been in markets from the last 7 years + know that these phases are all part of market cycles and what is moving down will eventually bottom out and then again will start moving up in tandem with growth of the economy.
In fact they understand that during such phases valuations mean revert to long term averages and sometimes go below the long term averages as well. Such a time is apt and correct to enter into markets and build a portfolio.
We at simply 3 capital are focused on SIP’s at this moment in clients portfolio. We are asking our clients to
# Continue with their ongoing SIP’s, as during these tough times with each purchase of SIP they accumulate more units.
# Where clients’ liquidity allows they should consider adding to their sips for a limited period of 2 years- 2 and half years.
# Avoid buying on dips and making lump sum purchases as the market bottoms and valuations mean reversion could be far from here.
# Do not become aggressive with the additional purchases.
# So keep on nibbling into markets by increasing SIP’s is what we are advocating.