Market at Highs: Is it Good Time to Invest?

The equity markets have had an impressive run after the pandemic in India. The Indian economy has shown tremendous resilience and strong fundamentals to back this growth. As of today, India continues to be a bright spot globally, being the fastest-growing large economy. As the rise of India continues and market is scaling new peaks. The last few years have attracted a lot of new investors to the markets and they would likely be sitting on impressive returns.

However, for new investors and those sitting on the sidelines and on good profits, one might expect a few silent questions in mind. Is it the right to put more money? Should I book profits partially? Would this market trend continue and for how long will it continue? In this article, we will try and lay down the basic principles on which we can find answers to such questions, irrespective of the market level or cycle.

Setting the right approach to investment decisions:
We do not have control over what the markets will do or have the ability to predict the same over the near term. However, what we know with a reasonable level of confidence is the long-term prospects for the Indian economy, and what we can control are our investment behaviour and our investment decisions. So the focus should be more on what we can control and our own needs. Here is a broad framework to set the right approach to investment decisions…