Greeting To All Our Readers!
We Wish All Our Readers, A Very Happy, Prosperous, And Healthy New Year 2022!
The Year 2022 has started! Investors of mutual funds and share market are expecting a lot of rising from the market, in the meanwhile financial experts are once again tensed due to the expected third wave of COVID-19 and the new variant, OMICRON!
Due to the third COVID-19 wave and the increasing case of the new OMICRON variant, the whole world is facing lockdown in a phased manner. In India too, many states have declared night curfew, the odd-even rule for the opening of shops, and many other steps.
If we look at some of the market events back in a few months, then in October 2021, we saw FIIs (foreign institutional investors) exiting with investments worth Rs 90,000 crore. Also, South Asian markets witnessed a dip due to the Omicron scare.
Overall, the market sentiment is extremely bearish, as a majority of the shares are declining.
What’s happening In the Indian Economy?
After the Fed announced a hike in interest rate amid the pandemic, there was depreciation seen in the rupee against the dollar. Currently, the rupee has depreciated at a 15-month low against the dollar.
Well, the Indian economy is trying its best to be on the recovery track and still aiming to achieve 70-75 percent of pre-COVID-level capacity utilization.
Infra is getting a good push from the government and real estate is getting traction with booking for apartments reaching new highs and people shifting from economy to premium class.
I talk about experts, they say volatility in the market not only brings sorrow but do bring opportunities to make money. Only it requires a solid plan and a good level of patience from the investor's side.
Financial Planning
It's never too late or too early to start financial planning. And for the same seek expert advice, talk to a financial advisor on how you should invest your money and where you should invest.
Remember, financial well-being is very important, and to understand, no example better than the COVID pandemic crisis can be. Knowing your risks and rewards and planning for an uncertain future is what every individual should do.
Financial planning aids in a better understanding of your financial goals, including why you need to reach them and how they affect other elements of your life and finances. Having a plan helps you to keep track of inflation
Diversification
Diversification of investments is the need of the hour. Start diversifying your investments. Your portfolio can keep allocation in bonds, equities, commodities, real estate, cryptocurrency, and derivatives are all examples of investments.
Just know, diversification is the key to spreading risk among high and low-risk investments based on your objectives, and holding terms can keep you ahead and worry-free.
The Mutual Funds asset class is gaining a lot of attention from retail investors. By investing in mutual funds, you can take exposure inequity with the help of a specialist called a fund manager.
They will do all the research available and aim to beat the benchmark so you can beat the market. Mutual fund investments have varied schemes that are designed to meet your financial goal requirements.
For Ex: If Your goal is less than 1-2 years, go for low-duration funds which invest in debt. And if your goal is long-term 5-7 years consider a multi-cap or Flexi cap fund.
Keep reading our article and stay updated with the latest news about Mutual Funds!
For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
Happy Investing!
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).