Stock market indices are at high: Here's what equity mutual fund investors need to do

The leading stock market indices NIFTY 50 and SENSEX are at all-time-high levels. The NAV of equity mutual funds for most funds have rebounded from the lows of March 2020. Going into 2021, the economic fundamentals and the global factors will decide the path of the stock prices.

However, for a long-term investor, who is saving in equity mutual funds for meeting the long-term goals, these events pose no danger. Over the long term, equities have shown the tendency to drift with upward momentum. All those investors who did not exist but continued with their investments after the market crahed in March stand to benefit from the spectacular rebound the markets saw. An investor having seen the ups and downs of such a market remains poised for the long haul and is largely undisturbed with such frequent fluctuations.

Investors especially the youngsters should not be too wary about the current market situation. When you are starting out, it’s easier to commit money for long periods, as you have few financial responsibilities and are in a position to take risks with your investments. The other advantage of starting young is that mid-course corrections are possible without any major impact on your portfolio.