Lok Sabha Elections The result of the election has come. This time BJP has not got absolute majority. Although NDA is in majority but the clouds of doubt regarding the allies will always remain. Its effect is also being seen in the market for the last few days. Volatility has increased in the market. This instability will be visible in the coming days. In such a situation, the big question is what should be the investment strategy in this turbulent market and where would it be right to invest? If you are also looking for answers to these questions, then we are giving you the answers.
Make an investment strategy like this
- Diversify your portfolio: Stock market experts say that to be least affected by market volatility, diversify your portfolio and invest in good quality stocks. It would be better to invest in large cap stocks as compared to mid cap and small cap.
- Always keep cash: Apart from shares, invest in bonds, gold etc. Also, always keep cash ready to take advantage of the fall in the market.
- Asset allocation is important: It is important to have the right asset allocation in the current market. Rebalance the portfolio to minimize risk. This fundamental approach helps minimize the impact of market volatility and political events, ensuring that no single event or market condition can significantly impact your long-term plans.
- Avoid making emotional decisions: Due to the fear of losing money, many people sell stocks as soon as the market falls. Don’t do this. Make decisions keeping the long-term goal in mind. Always focus on long-term goals and avoid taking emotional decisions.
Where to invest
According to market experts, the valuation of mid-caps and small-caps is very expensive, avoid investing in these stocks. The opportunity is in large-caps, which are available at a reasonable price compared to mid-caps and small-caps. So select large-cap stocks with good fundamentals and business and invest in them.
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