How to deal with good and bad market phases
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3 min read . Updated: 12 Oct 2021, 05:39 AM ISTArun Kumar R
The idea is to set the right expectations and stick to your plan of action
The recent rally in Indian equity markets also creates an inevitable uncomfortable question—“What if markets fall? Is there anything I should do?"
Scenario 3: Equity markets are in a crisis and declines more than 20% during the next one year—this usually indicates a bear market and although they look scary while experiencing them, these are usually the best buying opportunities in retrospect. You can plan to rebalance back to your original asset allocation by selling debt and increasing equity at intervals of say every 10% fall.
Arun Kumar R. is head of research - mutual funds, FundsIndia.