Experts Weigh In: Should Investors Buy the Dip or Hold Positions in Sensex?

Market experts believe that investors should see the recent 10,000-point correction in the Sensex as a buying opportunity rather than a reason to panic, as market drawdowns are natural processes that shake out speculative premiums and reset valuations to fundamentally healthier levels.

Experts Weigh In: Should Investors Buy the Dip or Hold Positions?

Vishal Dhawan, Founder & CEO, Plan Ahead Wealth Advisors, told ETMutualFunds that investors should view this 10,000-point Sensex correction as a long-term buying opportunity. He emphasized that long-term investors can continue their Systematic Investment Plans (SIPs) and hold current positions firmly, as panic selling must be completely avoided.

Dhawan further said that while regular SIPs are key to an investment journey, it’s essential to have a minimum 5-7 year investment horizon while investing. He also recommended that investors should avoid deploying an absolute lumpsum at current levels, as picking the exact market bottom is a statistical myth.

Benefits of Continuing SIPs During a Fall

Amitabh Lara, Executive Director, Anand Rathi Wealth Limited, shared a similar opinion, stating that continuing SIPs during a fall can actually work in your favor because the same investment amount buys more units at lower prices. He also emphasized that one of the biggest mistakes investors make is stopping SIPs during a correction and returning only after the recovery has already happened.

Market Impact and Details

• The BSE Sensex touched a peak of 84,391 on December 10, 2025, and is now down by nearly 10,148 points to a level of 74,243 as of June 6, 2026.
• As the market becomes volatile, investors as well as fund managers keep cash in hand and wait for the opportunity to deploy it in the market.
• Experts recommend a staggered deployment strategy via a 6-month to 12 month Systematic Transfer Plan (STP) for investors sitting on cash.
• Investors can also consider deploying a lumpsum in the Balanced Advantage category.

Key Takeaways

• Investors should view the recent 10,000-point correction in the Sensex as a long-term buying opportunity.
• Continuing SIPs during a fall can work in your favor, as the same investment amount buys more units at lower prices.
• Experts recommend a staggered deployment strategy via a 6-month to 12 month Systematic Transfer Plan (STP) for investors sitting on cash.

FAQs

What is the recommended investment horizon for investors?

Experts recommend a minimum 5-7 year investment horizon while investing.

Should investors avoid investing in single sectors or making sectoral bets?

Yes, experts recommend avoiding investing in single sectors or making sectoral bets, as performance in sectors/themes is highly cyclical.

What are the recommended sectors to invest in during market corrections?

Experts recommend prioritizing accumulating high-quality banking and financial services funds, as these segments offer good earnings visibility, corrected price multiples, and fundamentally strong underlying balance sheets.

Conclusion

Market experts believe that investors should see the recent 10,000-point correction in the Sensex as a buying opportunity rather than a reason to panic. They recommend continuing SIPs, avoiding panic selling, and prioritizing high-quality banking and financial services funds. By following these expert recommendations, investors can make informed decisions and navigate the current market volatility.