Friday, March 13, 2020

With the markets carrying on their tizzy circus, what should I do now?

*What should investors do now?*

Despite the carnage that has overtaken the global markets and including India, I feel that these are opportune times to review and re look at fundamentally good companies that have corrected ~20-30% from their peaks.

While, I would not advise to add 100pc of the total available funds in one go, I would definitely suggest and encourage not to shy away from the markets at such opportune times.

Admittedly, volatility is high. But many all weather stocks like HDFC Bank, ICICI Bank, Bharti Airtel, Bajaj Finance, Maruti, L&T, ITC etc, are now trading at relatively better valuations.

For those in the MF space, and wanting to shy away from equity markets, it would be prudent to look at the Banking PSU Debt Funds or Low Duration Funds with a decent paper quality only.

For the long term investors, parking into Low Duration Funds and STPs over a 18 month period into equity funds would be a good starting point now.

And for the long term equity investors, an initial allocation of 10 to20 % of fresh lcash slowly and steadily using bottom-up approach might just be the right antidote.

#thejoyofinvesting #patiencepays
#blueskypremiere