Should investors be scared of this month's stock market volatility?
Suresh Sadagopan: It's very heartening to see that retail investors are not panicking and they are not taking the money out of equity market like it has happened in the past. We suggest our investors that when we do our financial plan we are looking at what goals are coming up in mid-term and long-term, and based on risk appetite and based on what they need to do to achieve this goals, is how we put together a portfolio. So there may be a certain amount of equity or certain amount in debts, so there is a certain asset allocation we suggest.
And even with an equity there may be a certain amount of large-cap, mid-cap funds, balanced funds or dept-funds all those things we will have in the portfolio. Unless there is a dramatic fall in the market which I would not call the current situation a dramatic fall, I don't see reason for a tactical reallocation.
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If people are uncomfortable some of them look at a tactical re allocation, example: mid-caps are a kind of a pit so they can re allocate to large cap because that has slightly more potential to perform well forward. But that is not what we are suggesting to investors.
