Blackout was seen several times in the 1980s on the border of Gujarat. After four decades, the discussion of blackout is being heard again. The confrontation with Pakistan seems to be taking serious form. It is sure to have an impact on the economy. The revenue of many companies will decrease and the profit will be reduced. The supply chain may be interrupted. The closure of international air space can also reduce foreign trade. It will also affect foreign investment.
In the current condition, Palda is bent in favor of India. India is military, politics and financially strong. Despite this, the risk on your investment and financial security will increase. In such a situation, it is most important to take precautions. Investors should be prepared for difficult times in advance. This can reduce their losses. Let’s know what you have to take care of.
1. Do not stop your investment and not withdraw money
You do not need to stop your regular investment in nervousness. You do not even need to remove your investment in the market. If you withdraw your money by fear of some time pressure, then it will affect your wealth creation in the long term. Withdrawing money, you will miss taking advantage of it when recovery comes. Three years ago, there was a major decline in stock markets when the fight between Ukraine-Russia began. However, on a few months, markets recovered from the impact of this fight. Today no one talks about the fight of Russia-Ukraine.
2. Do not try to increase risk in portfolio
The Sensex has recovered up to 10 per cent from its most low level of April. However, there is still not much recovery in the smallcap index. It is still about 18 percent below its peak of December 2024. In such a situation, avoid making new investments in midcap and smallcap. If you want to invest, you can do in largecap stocks. Investing in largecap stocks will also keep your asset allocation correct in the long term. You can increase investment in largecap for a long period of long -term.
3. Keep some cash with you
What kind of situation will happen next, it is difficult to say now. In such a situation, it is important to keep some cash with you. You should keep enough cash with you for the necessary expenses of at least three months. If you were thinking about a big shopping, then postpone it for a few months. You can invest this money when the situation is normal. At the moment you have to control your spirit. A short time restraint can protect you from big losses.
Lisa Pallavi Barbora
(Lisa Barbora is the founder of Moneypajaldotcom. The idea expressed here is his personal views. It has no relation with this publication)