Indian markets at all-time high! What mutual fund investors do?

However, with markets reaching all-time highs, many mutual fund investors are debating whether to take profits or stick with their systematic investment strategies.

Indian markets opened at an all-time high amid robust inflows from foreign investors on the back of improving macroeconomic fundamentals. — *Mutual funds are often regarded as one of the greatest ways to invest in equities.*

In Wednesday’s trading session, the 30-share BSE Sensex rose more than 500 points to a new all-time high of 63,956, while the NSE Nifty rose more than 160 points, or 0.8%, to 18,910.

Mutual funds are often regarded as one of the greatest ways to invest in equities. However, with markets reaching all-time highs, many mutual fund investors are debating whether to take profits or stick with their systematic investment strategies.

“If you are thinking about redeeming your mutual funds, it is important to weigh the pros and cons carefully,” says Viral Bhatt, Founder of Money Mantra. If you need the money for an unanticipated expense, you must redeem your funds.

However, if you are selling your funds because you are concerned about the market, you should think twice. The market is always unpredictable, but it has always trended upwards over time.

“Many investors are blissfully unaware of the advantages of long-term investing and do not seek professional advice.” If you are unsure about the long-term benefits of investing, you should consult with a financial counsellor.

“A financial advisor can assist you in understanding the risks and rewards of investing and in developing a plan that meets your specific needs,” he added.

How do I choose the best fund?

“Historically, good funds have provided appealing past performance.” Any mutual fund will tell you in its risk considerations that past performance is not a guarantee of future performance.

However, it has been seen that good funds outperform in most market scenarios. “At the very least, they outperform in the long run,” Bhatt added.

“Preferred a fund that is based a lot more on the process and rules than a fund that is entirely based on the discretion of the fund manager,” he added.

He also emphasised that the most crucial stage in selecting the best mutual funds is to focus on finding mutual funds that meet your specific needs.