Indian markets fell last week as a result of FII (Foreign Institutional Investors) selling, while the broader benchmark index regained 1.01 percent on Friday. FIIs continued to be net sellers in October 2023, selling about $2,600 crore in Indian stocks through October 27 – the most since January of this year.

The more the market volatility, the more important it is to adhere to investing principles. Wealth gurus repeatedly advise investors to keep a long-term perspective and avoid getting carried away by dramatic fluctuations. Regardless, the dramatic swings whip investors into a frenzy.

We chatted with a few investing advisors to get a better understanding of what's next in the financial markets. "The market has already corrected 4-5 percent, but there is still a lot of volatility ahead due to inflation, global risks, and upcoming elections in the five Assemblies." As a result, investors should only invest 15% of their investible corpus right now, and the rest 85% until the dust settles," says Sridharan S., a Sebi-registered investment advisor and Co-founder of Wealth Ladder Direct. 

"Investors can look at the large and mid cap funds," he said.  According to Ravi Saraogi, Co-founder of Samasthiti Advisors, he has not discouraged investors from investing.  "Those who are investing for the long term should keep investing despite the volatility. Those with large sums of money to invest, on the other hand, can keep their money in liquid and money market funds and invest when there is a good opportunity," he says. He goes on to say that the market has only corrected by 5-6 percent as a result of the volatility so far. 

"This is not a formal correction. "However, because investors are used to the market going up and up, they are taken aback by this downward movement," Saraogi adds. Some financial consultants recommend that clients continue to align their investments with their long-term investing goals.

"Before investing, it's critical to match your investment goals and financial objectives with the mutual fund's offerings. Your risk profile, investment duration, liquidity, and tax impact are all important factors to consider," says Deepak Gagrani, Founder of Madhuban Finvest.

"SIPs should not be terminated during market volatility. It contributes to higher long-term returns. However, short-term investments in the equities market should be avoided for the time being," advises Renu Maheshwari, co-founder of Finscholarz Wealth Advisors. Based on the preceding considerations, we can make the following recommendations to retail investors:

Long-term objectives: Focus on the long-term vision rather than the short-term fluctuations.

Small change: The recent volatility resulted in a 4-5 percent market correction. As a result, there may be many more revisions ahead.

Much remains to be done: A multitude of concerns, such as geopolitical dangers, inflation, and elections in the five states, lie ahead. As a result of the consequences of these factors, markets may move in either direction.

Long-term investment: Long and mid-cap stocks should be held, but small-cap companies should be avoided.