Financial markets are in turmoil. Latest mutual fund sector data shows investors exiting liquid funds in hordes, while equity funds continue to see net growth.

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Each and every investor is asking the same question: Should I liquidate my mutual fund portfolio and wait till the market stabilises?

Think of this as a movie. There is a beginning, a lot of song and dance, followed by drama and eventually culminating in a happy ending.

This is how markets are. What one is witnessing today is a temporary setback. Just because externalities such as oil prices, rupee fall, US treasury yields, etc, have come together to roil global markets, doesn’t mean fundamentals of Indian markets are weak. It is up to the retail investor to not panic and continue to focus on their long-term goal of wealth creation.

Thus far, the gush of monthly systematic investment plans (SIPs) has been holding their own against the relentless selling by the foreign investors.

The scenario and portfolios presently look gloomy, but it is now that the core aspects of goal-based financial planning and asset allocation which inculcates the virtues of patience and focus stand you in good stead.

Kalpesh Ashar is a certified financial planner and runs Fullcircle Financial Planners and Advisors.

First Published:Oct 9, 2018 3:31 PM IST