Should you invest or exit the stock market during bull run?

Besides keeping up with good health, Covid-19 has taught everybody the value of financial well-being. The need of the hour is to plan and manage one’s finances timely, as well as effectively. At Money9, we strive to prepare you for such challenging times and help you better overcome them.

The Money9 Helpline hosted Shweta Jain, founder, of Investography to help our callers navigate through financial distress.

Here are some questions:

Umesh Joshi, Mumbai: I am 51 years old and have returned from Kuwait. I want to invest Rs 50 lakh via SIP of Rs 1 lakh per month. Where should I start investing?

Jain: You can invest via SIPs. I suggest you should invest and save for your retirement. You should also look at your goals and invest accordingly. First and foremost build an emergency fund of Rs 3 lakh. Keep it in a bank account or as FD or in liquid form. For investments done for the next 3 years, invest in debt, for 5 years in hybrid, and beyond that in equity.

Raj Agarwal, Mumbai: Currently, the equity markets are high, is this the right time to invest or exit the markets?

Jain: For investing in the market you should focus more on your own financial appetite than markets. If you are really in need of money then you can withdraw, otherwise, keep holding your investments in equity.