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How to re-enter the markets now?

Dhirendra Kumar suggests spreading your investments to manage the fear factor better

Amid the lower lows of the market, the fear factor made me redeem about Rs 10-11 lakh of my mutual fund investments (about a third of my total investments). I didn't really need this money and now want to again enter the markets. How should I go about this? Also, my SIPs of Rs 15,000 are currently running.
- Rajkumar

One should not redeem one's investments like this, as one doesn't know what may happen next. Having said that, your investing behaviour is not unusual, especially with respect to the current market movements. Although we may feel that the markets may rebound today or may further fall on some days, we can't really say anything till the time companies come out with their results. Nevertheless, companies have been giving indications of how its impact would be on their profitability. Besides, we can see decelerating economic activity in terms of a reduction in footfall because of social distancing and the coinciding banking crisis.

Taking all these into consideration, if you are a long-term investor who had pulled out of the market fearing the impact of the situation and who doesn't need this money in the near future, then spread your redeemed amount and invest the same over the next two-three months. I feel staying out of the markets during such volatile phases may impact your long-term investments.

However, don't invest all of this at one go in order to be able to manage your fear better. Further, consider investing weekly in a disciplined manner and avoid reviewing your investments every now and then. Regarding your SIPs, let them run as it is.