The market volatility can test your patience and perseverance.

The key factors in this process should be your time horizon i.e. the period for which you intend to invest, risk profile, investment objectives, and the type of investment strategy you would want to follow.

Sector and thematic funds have been attracting a lot of inflows from investors. Although these funds have varying degree of suitability to different segments of investors, those who want to park their funds often get attracted to them when the going is good in the stock market.

Seeing how mutual funds are finding their rightful place in investors’ portfolios is heartening.

In the ever-changing financial landscape, mutual funds have been playing an increasingly important role in investors’ portfolio.

One of the challenges for investors is to keep their portfolios on track through their defined time horizon. The current market situation with heightened volatility can test the patience and perseverance of investors. However, history tells us that investors who stay invested during turbulent times in the market get their due in the long run.

Equity, as an asset class, has an important role in the wealth creation process of investors. However, considering that the stock market tends to be volatile from time to time, investors must have the patience to not only stay invested during these turbulent times but also continue investing to benefit from averaging. It is equally important to build a well-diversified portfolio to minimise the risk. However, investors often get tempted to invest aggressively into funds that either have a narrow investment universe or a concentrated portfolio. 

One of the key factors that can help you achieve consistent investment success is to follow a goal-based investment process. Apart from creating a roadmap, it allows you to have clarity in terms of time horizon and target for each of the goals. Besides, it helps you decide how much you need to invest to achieve these goals as well as maintain the right balance in terms of risk and reward through an ideal asset allocation. 

Investing money is a life-long process and the sooner you start, the better off you will be in the long run.

The current volatility in the stock market can be attributed largely to geopolitical tensions, global economic uncertainties, FII outflows, IPO action and mixed corporate results.