Markets at all time high; should you exit mutual fund investments?

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Stock markets are touching all-time highs. Mutual fund investors are ready to book profits. However, should investors stop their SIP and book profits or should one continue investing?  Money9 Helpline hosted Smart Acumen Consulting’s founder Dhananjay Banthia to resolve all your queries.

Vivek Goenka: If we want to step up our SIP, shall we wait for a correction or what strategy shall we follow as markets are at record highs

Banthia: SIP is more of a disciplined way of investment. For example, if I experience a 20% hike in my salary and wait for a correction to invest in SIP, then that won’t be the right way. If you have started your SIP, let it align with your goal. In SIP there is a minimum of 7-8 years waiting period after which the real power of compounding is seen. So keep your money invested via SIP, you can increase the amount.

​Avinish Chaursiya: My portfolio consists of Adiya Birla Flexi Cal, SBI small-cap fund, HDFC index fund Sensex, ICICI Pru FMCG fund, Motilal Oswal nifty bank index fund, ICICI Pru nifty next 50 index fund, ICICI blue-chip fund, Kotak blue chip.

Banthia: Your portfolio is well-diversified and mixed. For the long term, I think the fund you have invested in will perform well. So, continue in that. I would suggest not diversify your portfolio further.