Announcements Home Insights Personal Finance Uncategorized

The market is correcting. Here’s what you can do2 min read

May 10, 2022

author:

The market is correcting. Here’s what you can do2 min read

The market seems to be going through another correction. While many might say that this was expected, many of us are still unsure about what exactly one is supposed to do in such a scenario. 

Our portfolios might seem to be in a lurch and compel us to get into action mode. So, we compiled a few things that have worked for a few others like you in the past. 

Keep Calm and Read On. 

Suggestions for times when the market is down:

  1. Tune out the noise: It’s always good to keep up with the news. But when the market crashes, there will be a lot of  advice and predictions floating around, and some of it unqualified. 

You will also find plenty of valuable tips and expert advice. Read them but form a strategy that works for you, based on your portfolio.

  1. Be disciplined: Being impulsive will only hurt your portfolio. 

– Spend a little more time on  research before making trading decisions. An little bit of extra reading might help you land on the right action required for your portfolio 

– Don’t make decisions about your long-term investments based on short-term market movements. In fact, doing nothing could sometimes  be the right move!

– Place stop-loss orders: Having an exit strategy when the market is down will definitely help you minimize potential losses. 

– Continue your SIPs: Since mutual fund investment investments are usually for the long term, there’s no need to discontinue your SIPs. 

  1. Diversification: There’s a reason why “Don’t put all your eggs in one basket” is a very common investment advice. 

Diversify your portfolio, if you haven’t already. This will minimise your losses when the market is down. Asset allocation will go a long way in protecting your portfolio from risks. 

Asset allocation is a strategy that aims to balance risk and reward by apportioning a portfolio’s assets according to an individual’s goals, risk tolerance, and investment horizon.

  1. Look for wealth-creation opportunities: Buying when the market is down is a well-known investment strategy. If you want to take a risk, then make sure you’ve done your research. 

If you’re thinking of buying a stock, do check its technicals and fundamentals carefully. 

Conclusion

These practices may not turn your portfolio from red to green overnight, but could shield your investments from the current volatility in the market. 

 

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for educational, information and investor awareness purpose only and in no way to be considered as advice or recommendation. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532. NSE (90165), BSE(6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019..

 

Leave a comment

Your email address will not be published.