India’s stock market became ‘bled’ today. When the market opened on Monday, the Sensex dived about 4,000 points and within 5 minutes the investors were cleaned around Rs 20 lakh crore. The market recovered till evening, but the loss of investors still remained around Rs 14 lakh crore. In such a situation, the common man who is expected to improve the future by investing small monthly SIP or upper earnings in mutual funds, will his earnings still remain?
A major reason behind the devastation that has taken place in the stock market is the US President Donald Trump’s reciperoot tariff on all the countries of the world. The US stock market gave negative reaction on this tariff policy. At the same time, China has also imposed a counter -tariff on America, which has increased the chances of increasing inflation there. At the same time, the possibility of recession globally is also strong. America has also imposed a tariff of 26 percent on India.
Will your SIP save saving?
In the midst of the crash of the stock market, every common man’s question is that the money he has invested through SIP in the market for the past several years will remain safe. The answer to this is Nisha Sanghvi of Pro-Mor Fintech, which has a 19-year experience about the market. He says that this is the time of market correction. US President Donald Trump has just come to power, so he is working to fulfill his election promises.
He says that as soon as Donald Trump is stable with the policy, the recovery will start in the market. This time can be 6 months. Now the faster decline in the stock market, the sooner it comes to recovery.
It has been seen earlier also. On 4 June 2024, when the result of Lok Sabha elections came in the country, there was a terrible crash in the market. But it was recovered in a few days. In such a situation, the investment of mutual funds of people will also come from ‘Red Zone’ from ‘Green Zone’ as soon as the market recovery.
Should be withdrawn money from mutual funds?
Being a common investor, this question can also come in your mind by seeing the situation in the market. On this, Nisha Sanghvi says that even if you withdraw money from mutual funds, what do you have other options. FD, bank saving or something. No matter how much returns you will get in them. The better than this is that you keep yourself invested in mutual funds now and wait for the recovery of the market. Nisha Sanghvi describes this time as the ‘cell of the stock market’.
He says that if your goal is long -term investment, then you should increase the stock market or your SIP, because at this time you will get cheap NAV in your SIP. That is, if you were getting 10 units NAV in your SIP value earlier, then it can now be 12 or 15. With this, you can benefit bumper if you recover market.
Investment in mutual funds and SIP
Investment in mutual funds is subject to stock market risks. The reason for this is the system of mutual funds. When the common man cannot invest money directly in the lack of stock market information, he invests in mutual funds. The money of many people gathered in mutual funds, its managers invest in shares of different companies. The returns received from this are distributed among all the participants. When a person does not have money in a mutual fund at once, then he also invests in mutual funds through a certain amount called SIP every month.