Investment Mantras during Volatile Markets
What is a Volatile Market ?
What is a Volatile Market?
• Excessive fluctuations in the market
• Market volatility is a natural phenomenon and the indices will move up and down as per market conditions
How to tackle Market Volatility ?
Tackling a volatile Market
• Discipline is the key– First and foremost strategy to adopt is to be disciplined as it delivers
results– Do not get carried away and indulge in heavy buying or heavy selling– Don't sell what you have planned to invest for the long term unless
fundamentals have changed
Tackling a volatile Market
• Invest regularly – Invest small amounts at regular intervals regardless of the market
movements– Mutual funds can serve this purpose in an effective way– It protects you from the risk of investing a large chunk of capital when
the market is at a high
Tackling a volatile Market
• Set goals for yourself– It is always advisable to invest with sound objectives in mind– Set stop losses for your stocks as it will protect you from unexpected
losses– These parameters can be varied depending on the market
Tackling a volatile Market
• Book profits when markets are doing well– Very important to protect your profits– Periodically rebalance the portfolio so that you have the right
allocation in various asset classes– It prevents you from getting exposed to unacceptable risk
Tackling a volatile Market
• Value Investing Helps– Value investing is an excellent option in volatile times– Investment is all about patience and a long-term approach always
reaps rich dividends– Stick to your financial goals and think about the long-term
Remember: Volatile or booming, patience pays!
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