Month of August was good for all funds, especially small and midcap funds, they moved up by an average of 11.54% to 7.83% whereas large cap funds moved by 2.5% +, this market movement was due to large inflows from foreign institutional investors and optimism that the rebound will happen sooner than expected.
So, the markets are not worried about the economic recovery this year, it has already factored in the growth potential of 2021-22 and has rallied in the hope of faster recovery.
This also means markets are not cheap to do lumpsum investments now, Systematic route spread over period of 6 months+ would allow us to average out our investments either ways.
If the time frame for investments are more than three years to fund long-term goals, please continue your investments through SIPs or STPs as earlier, if the STPs are stopped please restart them.
Our suggestion is to set aside funds for emergencies/contingencies in sweep accounts, ultra-short-term funds, relook at your life insurance cover, health insurance cover, also buy Corona Kavach policy for max cover.
If you have high costing loans like credit card, personal, car loans, redeem from your nonperforming schemes and close these loans
Stay safe, Stay healthy.