The date of February 28 for the stock market will be remembered as Black Day. Today, Sessenx and Nifty declined by more than 2-2 percent. The reason for this is the possibility of increasing trade war in the world. The market capitalization of listed companies in BSE declined by Rs 8.8 lakh crore. The Nifty came to a 9 -month low. Investors are very scared of this decline. They do not understand what the front direction of the market will be. The question is that if an investor has to invest 10 lakh rupees today, then where will you earn strongly by investing this money?
Take decisions according to the risk profile
Experts say that if your portfolio has given profits in the last three or four years and despite this you are not in a position to tolerate the current ups and downs, then it will be better to reduce the risk in your portfolio. The allocation of portfolio should always be done keeping in mind the risk-relieving profile, goal and investment duration of the person. The investor should not pay attention to the ups and downs of the market.
Invest keeping the goal in mind
The decline in the stock market has shook investors. But, it will not be good for you to take a decision by suddenly in the sentiment. You should not suddenly decide to reduce or increase investment in shares. Also, you will also have to avoid increasing investment in fixed income instruments. Santosh Joseph, co-founder of Germanit Investor Services, said, “If you have to invest 10 lakh rupees today, then you have to first look at your ability to take the risk.” He said that given the way correction has come in the market, it would be right to put a large part of the investment in shares. However, the focus of strategy should be the investor’s long -term target. He should invest in long -term in terms of market ups and downs in short term.
Surprise to invest through STP
The valuation has declined in several segments after the continuous decline in the market for the last five months. The question is, in such a situation, what should be the investment or the path of SIP should be adopted? Karan Aggarwal, Chief Investment Officer of Elevar said that if an investor has to invest Rs 10 lakh today, he should invest in a floating rate fund with a systematic transfer plan (STP) of Rs 50,000 every month. The next 12-18 months can be difficult for the market. In such a situation, the impact of the ups and downs on investing slowly will reduce the investment.
Investing in these funds will earn big money
Aggarwal advised SIP to invest in gold funds, global funds, largecap funds and midcap funds. He said that gold and international equity gives the opportunity of diversification. The reason for this is that both have a negative corlution to the Nifty 50. 1 Finance Assistance Vice President Yash Sendani said that if an investor has to invest Rs 10 lakh, he should focus on portfolio allocation. Instead of investment in a single asset, one should invest in different assets.