Nifty stuck in narrow range. Here's the mutual fund move you need to make now
With the Nifty 50 trading in a narrow range, mutual fund experts advise investors to stay the course and continue their SIPs as planned, emphasising that market volatility is a natural part of investing and should not prompt attempts to time the market.
'Investors should continue the SIPs as per the usual plan. Volatility is an inherent feature of markets. During a correction, SIPs work well as they average out the costs. So, if an investor puts their
SIP
on hold at the cost-averaging stage, they might miss the rebound if it happens soon after,' Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance, shared with ETMutualFunds.
Also Read |
HDFC Defence Fund adds Bharat Forge and Bharat Dynamics in its portfolio in May
Play Video
Pause
Skip Backward
Skip Forward
Unmute
Current Time
0:00
/
Duration
0:00
Loaded
:
0%
0:00
Stream Type
LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
1x
Playback Rate
Chapters
Chapters
Descriptions
descriptions off
, selected
Captions
captions settings
, opens captions settings dialog
captions off
, selected
Audio Track
default
, selected
Picture-in-Picture
Fullscreen
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text
Color
White
Black
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Opaque
Semi-Transparent
Text Background
Color
Black
White
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Opaque
Semi-Transparent
Transparent
Caption Area Background
Color
Black
White
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Transparent
Semi-Transparent
Opaque
Font Size
50%
75%
100%
125%
150%
175%
200%
300%
400%
Text Edge Style
None
Raised
Depressed
Uniform
Drop shadow
Font Family
Proportional Sans-Serif
Monospace Sans-Serif
Proportional Serif
Monospace Serif
Casual
Script
Small Caps
Reset
restore all settings to the default values
Done
Close Modal Dialog
End of dialog window.
Best MF to invest
Looking for the best mutual funds to invest? Here are our recommendations.
View
Details
»
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Play War Thunder now for free
War Thunder
Play Now
Undo
Another expert shares similar advice that investors avoid market timing risk and should continue with their ongoing SIPs. 'SIPs help investors avoid market timing risk by investing at pre-determined intervals. Investors should continue with their SIPs and avoid trying to time the markets, as more often than not, it is counterproductive to portfolio outcomes,' Kaustubh Belapurkar, Director – Manager Research, Morningstar Investment Research, told ETMutualFunds.
On Friday, the benchmark index
Nifty50
closed at 24,888, tracking sharp losses in Asian markets after
Israel
launched military strikes on
Iran
, escalating geopolitical tensions in the oil-rich Middle East. Nifty50 touched its 52-week high level on September 27, 2024, of 26,277 and is currently down by nearly 6% from its 52-week high level.
Live Events
For the passing week, Ajit Mishra – SVP, Research, Religare Broking shared that markets remained under pressure and declined by over a per cent during the week, weighed down by rising geopolitical tensions and mixed global cues. 'After starting the week on a subdued note, indices gradually drifted lower amid increased volatility and finally settled near the week's low,' he added.
Amid the ongoing geopolitical volatility due to Israel-Iran tensions and others, the two experts recommend that investors who are waiting to start fresh
investments
now can go for SIP or STP, and a disciplined asset allocation approach helps to tide the market volatility.
'SIPs are the best way to invest, instead of waiting on the sidelines trying to time the market. Following a disciplined asset allocation approach combined with regular investing through SIPs helps tide over market volatility to achieve desired portfolio outcomes,' Kaustubh advises.
Also Read |
ITC and BSE among stocks that mutual fund bought and sold in May
On the other hand, with a similar opinion, Minocha adds that a lump sum is preferable only when one has a long-term horizon and a high risk appetite.
'For fresh money, investors should do STP or staggered SIPs to spread out risk. Lump sum is preferable only when you have a long-term horizon and a high risk appetite. Many times, waiting for the perfect opportunity leads to missed opportunities,' Minocha recommends.
There are many different equity mutual fund options available to invest in, each serving a different purpose. While recommending which mutual fund categories are better suited for volatile markets, Minocha recommends that large-cap index funds and dynamic asset allocation funds do well during
volatile market
phases. 'Gold or
Gold
ETFs are also a hedge whenever there are geopolitical threats like the Israel-Iran conflict. Though for long-term holdings, diversified equity funds tend to do better,' he added.
Many market experts believe that gold is considered a hedge against inflation, and with global economic conditions remaining uncertain, gold is expected to retain its appeal as a hedge against market instability.
Kaustubh from Morningstar Investment Research recommends that investors should follow a disciplined asset allocation approach, which is driven by the investors risk return objectives and investment time horizon, as this drives the intended portfolio allocation across asset classes, including gold. And he believes that gold works as a good risk diversifier in a portfolio, as gold prices tend to display low correlation with other asset class price movements.
Debt
mutual funds
are expected to offer portfolio stability amid market volatility, while international funds provide exposure to diverse global markets, commodities, and foreign indices. Ultimately, the performance of these schemes depends on the specific geographies in which your money is invested.
Also Read |
Explained: What all Gen-Z should know about mutual funds
When asked whether investors should opt for debt mutual funds amid market volatility or consider international diversification, the expert from Morningstar Investment Research advised that debt funds should be chosen only if they align with an investor's asset allocation strategy. As for international exposure, it can enhance diversification and be added to a portfolio at any time.
Sharing a slightly different opinion on this, Minocha says that short to medium-term debt funds or arbitrage funds are safer if investors need the money within a time horizon of less than three years.
However, for diversification, one can consider building gradual exposure to international funds, although India remains strong on long-term fundamentals. Unfortunately, the mutual fund route is still not available for international funds, he added.
One should always invest based on their risk appetite, investment horizon, and goals.
(
Disclaimer
: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on
ETMFqueries@timesinternet.in
alongwith your age, risk profile, and Twitter handle.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
9 minutes ago
- Time of India
US stock market today: Dow, S&P 500, and Nasdaq rebound as Israel-Iran tensions ease and investors eye Fed decision
US stock market jumps as Dow rallies 500 points as Israel-Iran tensions ease, oil prices drop: What it means for investors and markets- Dow rallies 500 points as investors show renewed confidence amid hopes that the Israel-Iran conflict will remain limited. After days of tension, a report signaling Iran's willingness to ease hostilities pushed markets up and oil prices down. The S&P 500 and Nasdaq also gained 1.2% and 1.5% respectively, while WTI crude oil fell over 1% to $72.22 a barrel. As geopolitical uncertainty continues, all eyes remain on energy prices, Fed policy, and global market reactions. This live market update breaks down what's moving and why it matters. How are U.S. stock futures performing right now? All three major indexes are showing gains in mid-day trading: Dow Jones Industrial Average (via DIA ETF) : Trading around $428.07 , up +1.2% on the day (Intraday high: $428.17, low: $424.19) S&P 500 (via SPY ETF) : Currently at $604.15 , up +1.2% (High: $604.36, low: $599.07) Nasdaq 100 (via QQQ ETF) : Up to $534.70 , gaining +1.45% (High: $535.00, low: $526.92) These numbers suggest a strong bounce from Friday's losses, with broad participation across sectors. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Hoa Loi: Unsold Furniture Liquidation 2024 (Prices May Surprise You) Unsold Furniture | Search Ads Learn More What happened in the stock market last week? All three major indexes closed lower on Friday , snapping a two-week winning streak: The Dow Jones plunged 565 points , or 1.3% — marking its worst one-day loss since May 21 The S&P 500 slipped 0.4% The Nasdaq Composite declined 0.6% It was a tough end to an otherwise bullish June as investors locked in gains and weighed economic uncertainties. Live Events Where do the major indexes stand year-to-date? Despite recent turbulence, here's how the indexes are holding up in 2025 so far: Index Year-to-Date Performance Dow Jones –0.8% S&P 500 +1.6% Nasdaq +0.5% The Dow remains slightly in the red for the year, while the S&P 500 and Nasdaq are still managing modest gains. What's pushing the market higher today? Several key drivers are fueling Monday's rally: Middle East tensions cool down Fresh updates suggest Israel and Iran may be backing off from further military escalation, easing global risk sentiment. Oil prices drop Crude oil prices fell back toward the $69–$72 range , which calms inflation fears and supports equities. Investors gear up for Fed policy meeting The Federal Reserve's two-day meeting kicks off Tuesday, with a decision expected Wednesday. While no rate cut is expected, traders are closely watching Fed Chair Jerome Powell's comments and the latest economic projections. Big tech rallies Mega-cap stocks are leading the way: Nvidia , Tesla , Palantir , and other tech names are climbing between 1% and 2% . This momentum is helping push the Nasdaq higher after last week's dip. Market performance overview Index Intraday Change Weekly Trend Monthly Trend Dow +1.2% Slight dip Flat S&P 500 +1.2% Modest rebound Mildly up Nasdaq +1.4% Volatile Up ~2.6% Data reflects midday levels as of June 16, 2025. What's driving the market this week? Several major factors are making investors cautious: Middle East conflict : Fresh clashes between Israel and Iran have reignited fears of regional escalation. Economic policy uncertainty : Lingering inflation, sluggish data, and global trade tensions — especially with China — are creating a foggy outlook. Spiking volatility : The Economic Policy Uncertainty Index hit record levels, raising the risk of reduced consumer spending and slower business investment. Why did the Dow rally 500 points after last week's plunge? On Monday, the Dow Jones Industrial Average surged 494 points, or 1.2%, recovering sharply from Friday's sell-off. Investors appeared more optimistic after a report by the Wall Street Journal revealed that Iran may be open to negotiations — under the condition that the U.S. stays out of Israel's military actions. The S&P 500 also rose 1.2%, and the Nasdaq Composite led gains with a 1.5% jump. Last Friday, markets dropped steeply amid fears of a broader regional war. The Dow had fallen over 700 points, and the week ended with the index down 1.3%. The S&P 500 and Nasdaq were down 0.4% and 0.6% for the week, respectively. But Monday brought a wave of cautious optimism as the market digested signs that the Israel-Iran conflict may not spiral further. Is the oil market calming down after the initial shock? Oil prices, which had jumped dramatically following Israel's Friday strike on Iran, cooled down on Monday. WTI crude futures fell more than 1%, settling at $72.22 per barrel — a significant drop from the $77 peak seen during overnight trading. Traders have been laser-focused on developments in the Middle East, especially as Iran and Israel exchanged retaliatory strikes. On Monday, however, the tone shifted slightly, with reports suggesting both sides could contain the conflict. Still, the situation remains volatile. Iran has threatened to shut down the Strait of Hormuz, a critical channel for the global oil supply, while Israel claimed to have gained "aerial superiority" over Iranian airspace. Both moves, if pursued further, could send energy prices soaring again. How are tech stocks and the 'Magnificent Seven' reacting? The drop in oil prices helped restore risk appetite, especially in major growth names. Shares of Tesla gained over 1%, while Meta Platforms rose around 3%. Other stocks seen as beneficiaries of conflict-driven demand, like Palantir, climbed more than 3%. Investors appear to be shifting back into high-growth tech stocks — often called the 'Magnificent Seven' — after briefly pulling out due to rising geopolitical tensions. Lower oil prices and hopes of a de-escalation helped drive this renewed interest. Could the Israel-Iran conflict still impact global markets? Although markets found some relief Monday, the broader Israel-Iran conflict is far from resolved. As per Krishna Guha, vice chairman at Evercore ISI, the market is 'taking comfort from the prospect that the conflict could stay in the limited war mode.' But Guha warned in a client note that while containment is possible, 'we continue to anticipate the conflict will last for a few weeks in the base case and still see elevated risk of escalation that envelops energy and draws in the U.S.' Continued targeting of energy infrastructure could shake global supply chains and impact both inflation and market stability in the coming weeks. Will the Federal Reserve respond with a rate cut amid global tensions? As the market absorbs geopolitical developments, investors are also watching the Federal Reserve closely ahead of its interest rate decision on Wednesday. Despite weak manufacturing data released Monday morning, Fed funds futures indicate a 100% probability the central bank will hold rates steady, according to CME Group's FedWatch Tool. President Donald Trump has recently increased pressure on Fed Chair Jerome Powell to cut rates. However, the recent spike in oil prices—even if temporary—adds inflationary pressure, reducing the chances that the Federal Reserve will pivot to easier monetary policy in the near term. What's on the calendar this week? Here's what traders are watching closely: Federal Reserve decision on interest rates coming Wednesday (Expect a rate pause, but commentary from Fed Chair Jerome Powell will be critical) Updated economic projections from the Fed will also be released midweek Juneteenth holiday : U.S. markets will be closed Thursday, June 19 This Fed week could set the tone for markets going into summer, especially with uncertainty mounting across global and domestic fronts. What should investors watch next? As the Middle East conflict continues to unfold, markets remain highly sensitive to any signals from Iran, Israel, or U.S. officials. Meanwhile, economic data and Fed policy signals could drive the next move in stocks and commodities. Key things to watch: Any escalation or de-escalation in military actions. Statements from U.S. officials or Iranian intermediaries. Movement in oil and gold prices. Fed's rate decision and economic projections this week. For now, markets are breathing a sigh of relief. But with the Strait of Hormuz on the radar and energy infrastructure under threat, the situation could still take a sharp turn. After a sharp sell-off Friday, Wall Street is bouncing back to start the week. Calming geopolitical tensions, lower oil prices, and optimism ahead of the Fed meeting are giving investors a reason to step back into risk assets. All eyes now turn to Wednesday's central bank update, which could shape market momentum heading into July. FAQs: Q1: Why did the Dow rally 500 points today? The Dow jumped 500 points as hopes rose that the Israel-Iran conflict will remain limited. Q2: How is the Israel-Iran conflict affecting oil prices? Oil prices fell after signs that Israel-Iran tensions may not escalate further.
Time of India
9 minutes ago
- Time of India
Major Amex Platinum Card update incoming — here's what U.S. consumers and business users can expect
American Express is rolling out new updates to its US Consumer and Business Platinum Cards later this year, which is the global payment company's biggest investment ever in a Card refresh, as per the firm's press release. American Express' New Updates Coming Soon The company's Group President of US Consumer Services, Howard Grosfield highlighted that, 'Platinum Card benefits and services resonate across generations, particularly with Millennial and Gen Z who accounted for 35% of total U.S. Consumer spending last quarter," adding, "We're going to take these Cards to a new level, not only in what they offer in travel, dining and lifestyle benefits, but also in how they look and feel, to meet the evolving needs of our customers,' as quoted in the company press release. More Lounges for Travelers The major plans set for American Express include the opening of three new Centurion Lounges in airports globally in the next year in Newark, New Jersey, Salt Lake City, Utah, and Tokyo, Japan, adding to the total number of Centurion Lounges to 32, as per the company. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like São Paulo: Dores da logística resolvidas [explore] Sistema TMS embarcador Saiba Mais Undo Expanded Dining and Hotel Perks The company emphasized that it will continue to invest in its dining and curated hotel programs and pointed out that the recent acquisition of Tock will add 7,000 restaurants, wineries and venues to Resy, a platform that serves as a powerful network within American Express providing access to reservations. American Express also said that Fine Hotels + Resorts credit card and The Hotel Collection will also add hundreds of new properties in popular destinations. Business Platinum Upgrades on the Way American Express revealed that it also plans to update the Business Platinum Card to offer Card Members more benefits they can use to help their companies grow along with access to dining, lounge and hotel benefits. The firm said, "Business Platinum Card Members enjoy a flexible spending limit that adapts based on purchase, payment and credit history, business and travel benefits, rich rewards on business expenses, virtual cards and access to cashflow management tools." Live Events The company also mentioned that it will partner with leading brands on the Platinum Card and will announce more as part of the Card refresh, with further updates expected to come in the fall. FAQs What's changing with the Amex Platinum Card? Amex is adding new travel, dining, and lifestyle benefits — plus refreshing the design and feel of the card itself. When will the new features roll out? More updates are expected to be announced in fall 2025 and benefits starting to roll out later in the year, as per the company's press release.
Time of India
18 minutes ago
- Time of India
Issuance of preferential certificates under FTAs rises, signals higher trade pact use by exporters
The number of preferential certificates of origin issued under free trade agreements implemented so far has recorded a healthy increase, rising to 7,20,996 in 2024-25 from 6,84,724 in 2023-24, indicating greater utilisation of trade pacts by Indian exporters , according to government data. Commerce Secretary Sunil Barthwal said India's trade under the preferential route is growing. In a free trade agreement, two countries either significantly reduce or eliminate import duties on the maximum number of goods traded between them. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Moose Approaches Girl At Bus Stop And Nudges Her To Follow - Watch What Happens Happy in Shape Undo India has so far implemented over a dozen such agreements with countries including Japan, Singapore, Korea, UAE and Australia. A certificate of origin is a key document required for exports to those countries with which India has trade agreements. An exporter has to submit the certificate at the landing port of the importing country. Live Events The document is important to claim duty concessions under free trade agreements. This certificate is essential to prove where the goods come from. "If somebody is taking these certificates, it means that they are utilising the preferential duty which is available under the FTA," Barthwal said. Availing duty concessions under these agreements improves the competitiveness of Indian exporters. As per the data, during April-May this fiscal, 1,32,116 certificates have been issued against 1,20,598 certificates in the same period previous fiscal.
