SIP style of investing is a brilliant approach that investors can adopt: Abhishek Basumallick

Indian stock markets are witnessing a weak day of trade led by worries that the US Federal Reserve could rein in vast stimulus measures this year. The BSE Sensex index tumbled 232 points, or 0.42%, at 55,398 levels while the Nifty50 tested the 16,450-mark at 16,467 level, down 101 points. Abhishek Basumallick of IntenSense Capital spoke to Money9 on the best way for investors to approach a falling market.

“We knew the taper will come sometime although, the signals are still crossed and there is no sure shot sign that the market will go either which way or the Fed will act one way or the other. Fed Chairman Powell has said that it is not going to be an abrupt rise”, he said.

Speaking about if a deeper correction of 5-10% hits markets, he said that investors should always have a list of shortlisted stocks which they track to add more funds in.

“SIP style of investing is a brilliant approach that investors can adopt. Even if the markets fall, you can add more funds in the stocks in your portfolio to average out the cost. Investors should not over-complicate things. Keep investments simple to get decent returns. You may not become Warren Buffett or Rakesh Jhunjhunwala but if you follow a disciplined approach in markets, you’ll get decent returns”, he added.