The current phase of decline offers investors the opportunity to accrue the benefit of rupee-cost averaging. “One of the fundamental principles of index investing is accepting that there will be periods when returns are muted or even negative. Trying to time the market based on short-term performance can often do more harm than good,” said Himanshu Srivastava – Principal, Manager Research, Morningstar Investment Research India.
He advised to periodically review and rebalance the portfolio to ensure that their investments remain aligned with their long-term objectives.
Expressing optimism on the Indian stock market’s long-term growth prospects, analysts do not rule out a trend reversal in case of an end to the US-Iran war. “Even moderate single-digit earnings growth, coupled with a market re-rating as the West Asia crisis eases, could result in double-digit returns for the Nifty from current levels,” Ashwini Shami, President & Portfolio Manager, Omniscience Capital, told Mint in a recent interview.