Friday, June 27, 2008

Markets face further correction

But would our markets face further correction? Ved Prakash Chaturvedi, Managing Director, Tata AMC, shared with us, “Over a short term, volatility in the Indian markets would persist. We have seen in the past that markets react to domestic issues like inflation, rupee appreciation etc. Looking at the current domestic political situation, it seems that some volatility can be factored in.” The one thing that markets will look forward to is the September quarter results summary; as sentiments thereafter would be driven more by fundamental performance. But Pathak of Lotus India does advice that the retail investor should take the Systematic Investment Plans (SIP) route for MF investments. An advice mirrored by Chaturvedi of Tata AMC. What is SIP? It simply means that instead of putting in a lump sum amount in one go, the retail investor – through SIP – can break up the MF investment over a longer term into, say, monthly investments, thus ensuring that the entry cost risk is averaged out over a longer term (thus lowering the risk). We’re sold on that already... Are you?

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Source :
IIPM Editorial, 2008


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