SIPs: Your shield against market storms.

Avinash Satwalekar, President of Franklin Templeton India, advocates for goal-based investing via Systematic Investment Plans (SIPs) as the optimal approach to navigate stock market volatility. He asserts that SIPs are particularly effective during periods of market frustration, advising investors to remain invested to achieve long-term wealth creation.

Satwalekar also sheds light on why women investors often outperform their male counterparts. He notes that women are typically more goal-oriented, focusing on objectives rather than constantly fixating on returns, which can lead to better investment decisions. However, cultural conditioning, a lack of financial knowledge, and confidence issues can be significant hurdles for women in finance.

For managing downside risk, Satwalekar suggests incorporating asset classes with opposite volatility behavior, such as through multi-asset or balanced advantage funds. He cautions that reducing risk inherently compromises potential returns. He also points to sectors like banking and healthcare as potentially resilient, while tourism and airline sectors might face greater impact.