3 things that fully invested person can do!!
Most of the investors who are fully invested, were found to
be in 100% equity only. Very few fully invested people are in debt or Asset
allocator funds etc. Our all clients have either Asset allocator funds,
Arbitrage fund or Liquid fund in their portfolio. The allocation is ranging
from 20-40%.
Today, I will talk about the 3 things that such investors
(fully invested equity Investor) can do!!
1) Review your portfolio – Equity
market has bounced back quite a bit now. Quickly reach out to your advisor,
Wealth Manager of Relationship manager (if he hasn’t reached out to you yet)
and take action relevant to portfolio. It could be wise to generate some cash
balance. Those who think, I am long term investor and market will revive sooner
or later, may not be able to take advantage of current market. If your advisor,
WM or RM hasn’t approached you yet, don’t hesitate to approach him. It’s your money and you need to be vigilant,
he may not care as much as you care about your money😊.
2) Prepare strategy to take advantage of
the crisis- If your advisor is not reachable/capable to prepare
strategy, you need to do it yourself (unfortunately though). You will have to
make scenario analysis and the actions thereof. Example – What if market falls
another 10%, What if market rises another 10%, how I should re-align my
portfolio into Debt + Equity + Gold and further allocation to large/mid/Small
in equity side and duration/credit risk etc. on debt side. If you don’t have
plan in place, when markets will throw up challenge or opportunity, you will
not be able to act decisively.
3) Be systematic and committed-
Coming 12-18 months are going to be testing time for Investors. You will not be
able to exit the equity market due to its brighter outlook, and not be able to
weather the volatility of the market. Many questions are to be answered and
trends needs to be observed after world exits lockdown. What/ how and how much
things will change are Guesstimation at the moment. So time will be trying and
you got to be committed to the plan. If you leave half way, you will be at
disadvantage.
I must also mention here that if you are not confident on your
advisor/RM or WM and if you are not willing to stick to his/her plan, than
adopt status quo!! Reason of saying this is, a seasoned hand is likely to do
wonderful job and make good use of the once in decade opportunity. And if you
are going to behave volatile, than the entire strategy may not be advantageous.
Do connect with me if you wish to know, what our investment
strategy is for you!!
If you find our blogs helpful, please do like, share and
comment
Author –
Bhavesh
D Damania
Founder
& Chief Care Taker - Wealthcare Investments
EduPrenuer,
TV show panellist and Blogger
You
can reach him at 9833778887 and wealthcarein@gmail.com
"Risk comes until you know what, where and why you are Investing”
No comments:
Post a Comment