Thursday, 18 February 2016

Equity Index Fall: Oppertunity or Risk.


Hello Reader, last couple of month is been very hard time for investor across the globe. Most of the world equity indices fall 15-25 % in short spam.  Current oil crisis  triggered the panic button .

So, question is do you wait or start investing ? What should be strategy to not only sustain but also get maximum advantage from this situation.

As many world major Fund Analyst and fund manager said that India is better than any other emerging market in current situation. Currently India is in position where it could be recover faster than other .
FII outflow is the major reason for the fall in Indian market. Major stocks like SBI, L&T, Axis are almost 40-60% low from its 52 week high. So don't you think its actually a opportunity for investor to get maximum advantage. 

 As Mr Buffet said: 
"Games are won by players who focus on the playing field — not by those whose eyes are glued to the scoreboard."

If we stick to the ABCD of investment and keep adding fundamentally good stock then this volatile market could be your best opportunity.
A.    Invest regularly: Start MF SIP or Stock specific SIP monthly. This will help you in rupee cost averaging and you will sail through volatile market.
B.   Stay invested: Longer you wait better the return will be. Let the compounding play its magic. (Read this for magic of Compounding: http://kevaljethi2363.blogspot.in/2016/01/power-of-compounding-investment-magic.html )
C.   Diversify your portfolio: “Don’t keep all your eggs in the same basket?” The same applies for your investment portfolio as well. It is important to diversify your portfolio across various asset classes, financial instruments, sectors, geographies etc. Although diversification does not guarantee you profit, it will help minimize the overall risk of the portfolio. In a diversified portfolio, loss in one asset class can be offset by gains from another asset class.
D.    Keep it Simple: Invest in product which you completely understand. Get Mutual Fund rather than directly investing in stock.

Always remember the quote “The stock market is a device for transferring money from the impatient to the patient.”

Be Smart. Invest Smartly