Sensex touches 20,000: What investors should do now

The Bombay Stock Exchange Sensex hit 20,000 mark today. Thanks to the generous FII inflows and global financial rally amongst other things. While it’s perfectly all right to watch the ticker and be happy about your networth, that might have increased after the rally today, there are few things you could do after a day like today.

[caption id=“attachment_764037” align=“alignleft” width=“380”] Don’t let the markets highs and lows affect your emotions. AFP[/caption]

1. Mumbai based Certified Financial Planner, Pankaj Mathpal said," If you are someone who has a long term view and your investments into equities are tied to some financial goal, don’t redeem." Of course, you might be tempted to redeem and book a profit, but, if it’s a long term goal, you better resist the temptation to sell.

2. As far as buying more goes, continue with your SIP into equities funds. Buying lunpsum, should be done when the markets are down, not when it’s moving up wards. Remember the age old adage, “buy low-sell high.”

3. “If some funds are invested which are not tied to a financial goal, you could book a profit,” said Mathpal.

In short, no one can time the market, so if you are a regular investor and not a trader, don’t try and time the market. Don’t let the markets highs and lows affect your emotions. Market will rise one day and fall the other. A disciplined approach is what works best.