Is a Crashing Market a Good Time for Mutual Fund Investors to Exit?

With the Indian stock markets tumbling in recent months, many equity portfolios are in the red and investors are understandably concerned. Nifty is already well below the 11,000 mark, and may well be close to the 9,000 mark effectively if one excludes the top 10 performing scrips.


The BSE Sensex is trading lower compared to the 1-year-ago and 3-months-ago levels, while it is flat compared to its level 6 months ago. In the past one year, small cap and mid cap funds have offered negative returns of almost -16% and -12%, respectively.


However, this need not be reason to panic. What’s unfolding in the stock markets currently could be a market “correction”, so do not try to time the market or take exit decisions without understanding why markets are behaving the way they are.


Read the full article published originally on Financial Express: Mutual Funds: To stay invested or exit? Check these four points first