How to Manage your Investments in Current Financial crisis ??
Few tips to investors to face the current difficult times in Markets..
1 . Divide Your capital and invest only 25-35% in direct equity Markets. Make sure this money is not needed in the short run.
2 . Look to invest in Gold, Deploy 10-15% of cash in buying gold. Over a long term Gold can be a good hedge against Equity markets.
3 . For people who are already invested in markets , look to rejig your portfolio. Reduce exposure in Junk stocks and non performers. Reallocate the cash into buying Quality Blue chip stocks.
4 . Never, Never borrow money to invest in stock Markets.
5. Dont jump and buy a stock in one go thinking its cheap, you might get it cheaper in a week or two. Do staggered investing. Split your investment for a 10-12 month time frame and accumulate stocks slowly.
6. One idea would be to invest in niftybees, its like buying a share but the underlying value will be nifty's value. Keep buying it in a SIP (systematic investmnt planning)
If u have planned to invest 1lahk instead of buying the stocks in a single trade and the stock tumbles 80% you will tend to lose entire capital.Instead follow systematic investmnt planning , Invest 3000rs/week on the stock which you are bullish in long term for next 10-12 months your avg value would also come down and your investment would be safe.
7 . Do not try to guess a bottom in markets. Not many people have been successful in the past doing this. Let market announce the bottom.
8. Stocks that participated in the last bull run might not move up again. Research or take advise from a financial adviser to know stocks that could possibly perform well in coming years.
9. Stay calm and patient, its hard to demand this in current scenario. Patience could be the costly commodity. But this difficult phase will not last forever. It might continue for some more time. But at one point it will stop and things will get back to normal.
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