Action plan for all types of investors

The new investor: If you are starting now, don't be afraid that the market may tumble. There is no good or bad time to start investing. Do opt for SIPs and keep a long-term horizon. If the market does fall, take that as an opportunity to average your investment cost. You can start investing in an aggressive hybrid fund in place of a pure equity fund. These funds invest 20-35 per cent in debt and hence cushion a market fall. The icing on the cake: they also provide automatic rebalancing. The experienced investor: You have seen the magic of SIPs. Though these may seem to be unusual times, your response should be usual: keep investing. Though you may be tempted to think of innovative ways to lock your returns and avoid pain, do remember that the most effective thing you can do is continue investing. Nearing the goal: If you are nearing a long-term goal, start making a systematic exit. Don't be lured by the bull run. If the market changes course, your goal may be compromised. You can move your corpus to good short-duration debt