What’s The Optimal Approach To Navigate Market Volatility? Envision Capital’s Nilesh Shah Explains

The optimal approach to navigating the current situation is to maintain a long-term perspective and continue to believe in the potential of India and that the country will remain the world’s fastest growing large economy, he said. In such a scenario, market reactions may not be in a linear fashion, but they will reciprocate positively over time, Shah said.

According to him, it’s important to endure periods of market underperformance. If it temporarily deviates from underlying fundamentals, it is likely to correct itself in a relatively short span, he said.

For retail investors, a systematic investment plan could be one of the best forms of insurance. With the SIP, investors naturally stagger their investments over time, allowing them to navigate market volatility more effectively. This approach enables individuals to invest gradually, mitigating the impact of short-term market fluctuations, Shah said.

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