Yes, to get rich you also need Buffet-like patience. No one on earth probably knows for sure when the markets will bottom out. So if you have Rs 100 to invest in equity, start putting in at least Rs 5 to Rs 10 in the equity markets now. The present valuations are attractive according to Sensex news, but you need to think long term. Indeed there would be a lot of volatility in the short term in the BSE-Sensex. In a bear market, the BSE Sensex reacts excessively to any bad news as well as good news. You need to precisely define your role: whether you are a trader or an investor or a speculator. Once you get a clear understanding of your role, you actions fall into their logical place.
Moreover, why not pick up stocks in the Indian share markets that FIIs are selling at cheap as they face redemption pressure at home? Many experts say that the next wave of selling pressure in Indian stock markets would come from hedge funds that are facing heavy redemption pressures. Hedge funds were the most leveraged players on earth and have been hit hard by the deleveraging process.
If you want to the SIP route to Indian stock markets, there are now even more flexibilities on offer. You can even choose the daily SIP route, to get more from benefit the law of averages at the India share markets. During these extreme volatile times, monthly SIP takes away the real effect of law of averaging. Another big opportunity now is to dump any dud stocks you have in your portfolio and get hold on blue chips of Indian stock markets you longed for earlier but could not buy them because of higher valuations. The positive thing about this meltdown is that even these blue chips are trading at throwaway prices. When the market corrects, these stocks would be the first to rally. You can also look at midcaps of Indian mid that have lost more heavily than largecaps in the Indian stock markets. The small size of the midcaps give them the extra edge to grow faster when the times are favorable. But in a turbulence, their smaller size does not give them protection. Thus, they shed more value in a downturn as compared to large caps.
Also, midcaps are more volatile as compared to large caps. When the meltdown process began many mutual funds rushed to the safety of large caps. When the tide turns for the better, they will again rush to the midcaps for their growth preference. So why not grab some of the midcaps now that you avoided earlier because of their higher valuations?