Should I stop my systematic investment plans (SIPs) in equity mutual funds? Should I redeem my existing schemes? These are some of the questions panicstricken retail investors are asking amid the rout in the stock market that has eroded the value of their holdings. This time, however, financial advisors are not asking investors to maintain status quo. Instead, they are advising clients to tweak their portfolio to suit the new market conditions.
So what has changed? Till recently, investor portfolios were heavily biased towards mid- and small-cap schemes. Now, advisors are asking clients to invest more in blue-chips.
"We had recommended a 70 per cent exposure to midcaps and 30 per cent to large caps; but now we are asking investors to do exactly the reverse," says Rupesh Bhansali, head (distribution), GEPL Capital, a Mumbai-based distributor.
