Money tip! If you want to make money, don't panic, do this instead; check list here

Investors can make money if they don't panic at the first sign of trouble in the markets and instead take advantage of 2 points - rupee cost averaging and compounding. Nikhil Kothari from Etica Wealth Management has this big tip for investors

SIPs are long term investment that would benefit from compounding and rupee cost averaging, Nikhil Kothari says

SIP Investment Strategy: Markets across the world have been hit by the Coronavirus epidemic and Indian markets have had a similar experience too. On 28 February, the markets saw a massive fall. In a situation like this, when predicting the movement of markets is not an easy thing, what should investors do? Making money is a process that should never stop. So, should new investors invest their money even though markets are falling? Should current investors stop their Systematic Investment Plans (SIPs)? Should they go for new investments or remain invested in existing schemes? Zee Business expert Nikhil Kothari from Etica Wealth Management has the right tips for the confused investors.

Coronavirus is now a global health emergency with more than 3000 deaths and 80000 people affected by it. More than 30 countries are now under its grip, impacting markets across the globe. China, which is the epicenter of the epidemic is a lifeline of the global supply chains.

Nikhil Kothari says that despite the tumultuous situation, investors should remain calm. He advised investors not to impulsively change investment strategies in these uncertain market conditions and definitely not sell-out in a panic. Any change in the portfolio now may have a longterm impact on the investor. In fact, continuing the existing investments may have a major compounding benefit for investors, earning them huge amounts.

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The investors should plan investments keeping a longterm view, the expert suggests. He further suggests investors not to stop their SIPs. He also says that buying more units of low Net Asset (NAV) Value will be beneficial. SIPs are longterm investment instruments and will benefit from compounding. The SIP will also benefit from rupee cost averaging.

Rupee cost averaging is an investment approach. You can continue investments until a certain time period. When the cost is high buy less, he advises.

Nikhil Kothari's investment list:

Large-cap funds
Funds 1yr 3yr 5yr

DSP Top 200
Mirae Asset Largecap Fund 12.01 6.82 4.97
Kotak Equity Opportunities Fund 12.48 8.54 8.34

Mid-cap funds
Mirae Asset Midcap Fund - - -

Small-cap funds
Kotak Small Cap Fund 15.57 4.76 7.37

Multicap funds
Parag Parikh Long Term Equity Fund 9.10 11.42 10.66

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Contra Funds
Invesco Contra Fund 8.18 10.40 8.65

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