Sky-high markets: What you should and shouldn't do

As the market soars to new heights, investors feel a range of emotions - from excitement to anxiety. They find themselves at a crossroads as to what they should do. It's no surprise that our inboxes get flooded with inquiries from our readers seeking guidance during such times. In this article, we aim to address some of their common questions. I have idle cash with me. Is investing lump-sum money a good idea when the market is at its peak? At Value Research, we do not advocate lump-sum investments, regardless of whether the markets are reaching new highs or not. Instead, we recommend spreading your investments through SIPs or systematic investment plans. SIPs help you average your investment cost, mitigate the temptation of timing the market and reduce volatility. Additionally, SIPs promote a disciplined and consistent investment habit. However, if you want to invest a lump-sum amount, we propose opting for a systematic transfer plan (STP) as a more prudent choice. Click here to explore why. Should I stop my SIP during market highs and wait to 'buy the dip'? 'Buy the dip' means purchasing units when they have dropped in price and are available at a ch

This article was originally published on January 30, 2024.