A day after Tokyo led a collapse across Asian and European equities on Monday that saw benchmark indices Nifty and Sensex plunge over 2.5 percent in trade, Edelweiss Mutual Funds CEO Radhika Gupta termed it a stock market correction, not a crash.
Taking to Instagram, Gupta urged investors not to panic and "dread the red" but to make corrections instead.
"I always say it's called correction not crash because correction corrects our behaviour and it corrects our expectations. Corrections are a part of the journey of investing. So hold tight and stay invested," she said.
Stressing the need to stay calm, Gupta added that corrections are normal and that she has witnessed "crisis after crisis" in her 20 years of investing.
Addressing a question on whether investors should exit all their mid and small caps, the Edelweiss Mutual Funds' head said, "No, even if you make asset allocation mistakes and not all mid and small caps are mistakes, this is not the time to fix them. Let things calm down and you will have time to review your mistakes but a storm is not the time to review your mistakes."
She also suggested to not buy more equities in a state of panic. "I always say that don't take too much action when you are in a panic. If you're comfortable you can always buy more equities but don't feel the need to take a lot of action in any difficult situation," Gupta said.
Indian benchmark indices ended marginally lower in the highly volatile session on Tuesday with Nifty below 24,000. At close, the Sensex was down 125.84 points or 0.16 percent at 78,633.56, and the Nifty was down 63.05 points or 0.26 percent at 23,992.55.
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