Time In Market, Not Timing The Market Is More Important, Says Nikhil Rungta

Nikhil Rungta, co-chief investment officer – equity, LIC Mutual Fund shared insights on how an investor can use mutual funds for long-term wealth creation. He cited an example of a couple who had fulfilled their financial goals, through consistent efforts. They had invested with discipline through a systematic investment plan (SIP) rather than blindly follow the market and were able to generate wealth for the long run

“If a new investor comes for wealth creation, he should first start focusing on his own financial goals,” said Rungta. He said investors must know what they are saving his money for, what their goals are, and also look at their risk appetite.

For newcomers, Rungta suggested allocating 40-50 per cent in different asset classes for diversification. A multi-asset allocation may look like a mix of investments in equity, debt, commodities, real estate, he said. Rungta suggests allocating at least 30-40 per cent in diversified equity mutual Funds, across large-caps, mid-caps, multi-caps and small-caps and around 10-15 per cent in thematic and sectoral investments.

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