Stock market volatility increased, change strategy
The market is once again going through a period of volatility. You can’t control it. But how to react to the continuous change in market trends is in your hands. You should not panic about the downfall of the market, but should change your strategy to make profits. Let us know from Abhishek Bhatt, Wealth Head, Arihant Capital, how we can make profits in such a volatile market.
Keep Tracking Investments
When you invest in a variety of assets, you may not be tracking all investments regularly. In such a situation, it will be difficult to give accurate feedback on changing market trends. So if you are unable to track your investments, then take the help of a trusted financial advisor.
Changing portfolios dramatically increases risk. Such a habit can negatively impact long-term goals. It is better to ignore the immediate fluctuations in the market and maintain discipline. Make small changes if portfolio changes feel necessary.
Buy in a phased manner The
correction in the stock market has made the prices of many such stocks which were overvalued till a month ago. This is the time to buy good stocks that are available at low valuations. However, when the decline will stop, no one knows. So buy small shares every fall. This will be averaging.
Don’t make panic decisions
Always remember that the mood of the economy and the market is cyclical. Just as there is an uptrend, so can a downtrend. Obviously, panic selling in a downtrend would not be a good strategy. Good stocks often give better returns in the long run.
Diversify your portfolio Diversifying your
portfolio is a great way to keep your investment value stable in a volatile market. Diversification refers to the distribution of investments in different assets according to the risk appetite and goals. The advantage of this is that if one asset (such as equity) is declining, at the same time an uptrend in another asset (such as gold) will offset the loss.