Are bulls back? As stock market spikes, what should retail investors do now?

Stock markets are rebounding after a 6-month slump, but mutual fund SIP inflows are falling. Experts advise retail investors to stay invested during volatility and not stop SIPs. Learn what top financial advisors recommend for navigating the current market trends. 

  After being on a downswing for nearly six months, stock markets have started to rise again. The overall benchmark indices, Nifty 50 and Sensex, spiked over the last four trading sessions (up to Thursday), with the former rising 6.5 per cent and the latter 6.4 per cent during this period.

Although trade tensions over Trump’s tariffs persist, the pause button pressed by Donald Trump has fuelled a sense of hope in markets worldwide.


The overall bearish sentiment over the past few months has dissuaded investors from putting money into mutual funds. Inflows into mutual funds SIPs have been declining month after month. In January, SIP inflows stood at ₹26,400 crore, dropping to ₹25,999 crore in February and further to   ₹25,926 crore in March.

This clearly shows the decline in optimism among retail investors for equity investing. Deepesh Raghaw, a Sebi-registered investment advisor says that equity markets are supposed to be volatile. 

“If the current volatility bothers some investors, they should correct your allocation and bring the exposure to equity lower than the current ratio, say 70 percent. And if someone wants to maintain a long term portfolio, they should learn to live with it (volatility),” he said.

“When the markets could come out long periods of lockdown during Pandemic in 2020, we can definitely come out of this volatility,” he added.


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