5 DO's WHEN MARKETS FALL

-->

We have had a terrible time in the markets. It is true that the current environment remains challenging due to macro-economic headwinds. Over the past many years, financial markets have gone through multiple phases of ‘risk-on’ and ‘risk-off’ environment.

(1) Be your own judge: 

Develop a philosophy. Take your time, understand the product and, then, proceed. And, once you make the decision, be prepared to change course. “Be fearful when others are greedy, and be greedy when others are fearful”. Following the principle, falling markets gives an opportunity to invest in lower NAVs of promising funds.

(2) Trust the expert: 

Seek the advice of a Financial Planner for a better choice of funds. It helps you in creating a road map for reaching your goals. This will help you in identifying, quantifying the current financial needs and how you can achieve these goals in a disciplined manner.




(3) A Patient & Disciplined investment approach:

Investors might see gains in the short term, but lose in the long term due to lack of disciplined investment. Hence it’s always prudent to have a disciplined investment approach with a long term investment in mind.

(4) Diversify your investment: 

Diversify all your investments in various assets. Scatter your money or spread your investment portfolio over a wide range of different assets like Equity, Debt, Gold, Real Estate, NCD, PPF, Life Insurance...etc. and reduce the risk of returns. It acts as a shock absorber on a car - it smoothens out the ride on a bumpy financial road.

(5) Don't panic: 

Don’t panic or don’t be disappointed in the current market fall. Volatility is in the nature of the market. Don’t worry it is the nature of stock markets to move up and down, Understand volatility for better returns; this trade-off is a good one for long term investors. Stay away from the crowd.


Comments

Post a Comment

Popular posts from this blog

PPF- Public Provident Fund.- Explained - Rate & Limit Hiked Wef. 1st Dec,2011

PPF Eligibility- Individuals, individuals on behalf of minor  Min- Rs 500 per annum in multiples of 5 Rs 1,00,000/- per annum (wef from : 1 st Dec,2011) Duration- 15 years, can be extended for one or more blocks of 5 years. Account can be discontinued but the repayment of subscription and interest will happen only  after 15 years. Rate of Interest – 8.6% pa, credited in the account on the 31st of march and calculated on the minimum balance between 5th Day and the end of the month. Loans – During the third to sixth year the account holder can avail the facility of loan of an amount not exceeding 25% of the balance standing to his credit at the end of the second financial year immediately preceding the year of loan application. The principal amount of loan under the PPF scheme is required to be paid either in lump sum or in monthly installments within a period of 36 months. After the principal amount is repaid the interest is to be paid in not more...
Read more

Spending Money ? Stop Spending too much

Image
Spending Money (Everyone’s Favorite Activity)   STOP SPENDING MONEY –  We will here talk about spending money….Spending that too when we don’t have to….we are talking about the psychology of managing money/cash, and the amount of cash spending started by India’s youth now a days. We actually don’t realize that spending cash i.e. purchasing products or services are purchased under different reasons, most of the time whatever things/products or services we buy….its just because of our feeling (a feel good factor within us). This type of feeling & satisfaction on spending, leads to short fall of CASH. Sometime spending too much on unnecessary products & services don’t allow us to pay off our debt…or in other words “we don’t get debt free”. We all have rainy days; a lot of people among us feel so empty and feels low self-esteem because sometime we spend a lot on unnecessary things. Once we truly follow this and understand the emotions ...
Read more

PPF- Public Provident Fund.- Explained

Image
PPF (PUBLIC PROVIDENT FUND) •       Eligibility- Individuals, individuals on behalf of minor •       Min- Rs 500 per annum in multiples of 5 •       Max- Rs 1,50,000- per annum •       Duration- 15 years, can be extended for one or more blocks of 5 years. •       Account can be discontinued but the repayment of subscription and interest will    happen only after 15 years. •      Rate of Interest – 8.70% pa, credited in the account on the 31st of march and calculated on the minimum balance between 5th Day and the end of the month. •       Loans – During the third to sixth year the account holder can avail the facility of loan of an amount not exceeding 25% of the balance standing to his credit at the end of the second financial year immediately preceding the...
Read more