Investment mantras during volatile markets

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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