I have a clear recommendation for the method of investing ones capital.
Firstly, an investor should make a "Base". One needs to ensure that the bulk of his capital has a special edge, an extra safety. So that his journey as an investor is set on solid grounds. This will happen if he buys in a sharp volatile correction, which the market have not shown since 2008 meltdown.
In a meltdown, the cyclical stocks will touch unimaginable prices. Whereas, the good stocks, which are having sustained growth, more or less, like HDFCBank, Gruh, Cipla, Axis, etc will be available at a 25% discount. In this scenario, one can liquidate all extra cash and/or assets and reallocate this bulk.
Once, this base is set he could buy quantities at corrections like we saw in the last month and half.
On the other hand, if one buys bulk in minor corrections, he is very likely setting himself up for a heartbreak as this minor could turn into a meltdown.
I am saying this, keeping in mind the shortcomings of the mentality of an investor. Pros argue that if one buys near book value or properly estimated DCF price all will be well in the long run. But hey! mind knows this but not the heart.
Regards,
Amit