With the 2019 Lok Sabha Election fever reaching a crescendo, the market is likely to face high turbulence and volatility. While no one can predict upswings or slumps, it is important to devise a strategy to defend your investments, no matter how the market reacts.
Instead of just focussing on profits, take volatility into account when parking your funds in various vehicles. Once the economy stabilises post the election results in May, there will be greater visibility in terms of how the market is performing. During these times of increasing market volatilities, read along to follow the right investment strategy.
Safeguard your portfolio
According to Morgan Stanley, the equity market in the run up to the 2019 elections will show a stable performance, as per historical trends. Experts believe that before every election, the market has always shown stable highs and lows.
However, predicting how the market will move, post the elections, could be difficult to determine. Hence, risk-averse investors seeking high stability must invest in fixed-income instruments like fixed deposits, which offer higher returns with stability.
Plan for security with FDs
During the end of 2018, the repo rates were hiked, which resulted in higher FD interest rates. However, the RBI recently cut the repo rate by another 25 basis points, bringing it down to 6% from an earlier rate of 6.25%. This means that the high FD rates you can enjoy now may soon alter, and now is the best time to invest in this safe and secure investment.
For safe and guaranteed returns, invest with reputed issuers like Bajaj Finance FDs. Backed by ICRA’s safest MAAA rating and CRISIL’s highest FAAA rating, Bajaj Finance Fixed Deposit offers assured returns of up to 8.75% along with an extra 0.25% on FD renewal. This makes it one of the best FD interest rates you can enjoy at present. Owing to such substantial, secured returns, FDs can form a larger slice of your investment portfolio right now.
Managing growth-oriented investments
Last year, the performance of stocks, equity mutual funds, debt mutual funds and real estate failed to impress investors, and this year again with increasing market volatilities, it is best to consider safer investment avenues.
Since 2019 is the year of General Elections in India, volatilities are likely to be at an all-time high. Most investors get swayed by projections of possible election outcomes, which tempts them to time the market.
Instead of investing right away, you may want to wait for a market correct before allocating a significant chunk of your savings in growth-oriented investments.
For those who are already invested, it is best to ride through the imminent crests and troughs, instead of liquidating your investments, during fluctuating stock indices.
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