The ongoing conflict in West Asia has once again pushed stock markets lower. The uncertainty around the situation has left many investors confused about what to do next. Here is what five mutual fund experts say, as reported by ETWealth. Time to increase equity allocation?

Thinking of increasing equity allocation amid market volatility? Shridatta Bhandwaldar and 4 other experts answer

The ongoing conflict in West Asia has once again pushed stock markets lower. The uncertainty around the situation has left many investors confused about what to do next. Here is what five mutual fund experts say, as reported by ETWealth.

Equity investors should use the opportunity to increase their allocation, given better entry points at lower valuations. However, assess your risk appetite and goals before investing.

Asset allocation should be guided by an investor’s risk tolerance, time horizon, and return expectations, ideally determined with financial advisers. Investors may consider increasing equity exposure gradually over the next 3-6 months.

Market volatility has often presented opportunities rather than risks for long-term investors. Investors should maintain diversification and use dips to gradually increase exposure, rather than trying to time the market.

While corrections often present entry points, a disciplined and balanced approach is essential. Large-cap stocks offer relatively better valuation comfort and stability. Multi-asset funds serve as effective shock absorbers.

After the fall, equities have become slightly more attractive, but in aggregate they are still not cheap. Investors can consider topping up their SIPs, but valuations do not yet offer enough comfort to warrant a material change in asset allocation.