Nifty Future Tips: Five deadly mistakes you must avoid in Volatile Market


Posted February 10, 2016 by anikSingh

Nifty Future Tips: NEW DELHI: The S&P Bombay Stock Exchange Sensex has lost over 2,000 points so far in calendar 2016, weighed down by universal factors such as falling crude oil prices,

 
Nifty Future Tips: NEW DELHI: The S&P Bombay Stock Exchange Sensex has lost over 2,000 points so far in calendar 2016, weighed down by universal factors such as falling crude oil prices, selling by overseas institutional investors, slowdown in global growth and muted December quarter earnings of domestic Inc.

Retail investors, who made a comeback in Calendar 2015, may have just started feeling the problem as the value of their investments dipped (notional, if invested in cash). Valuations skyrocketed in 2014 when the Modi-led gov. took the reins at the Centre

Dalal Street veterans warn investors to avoid five crucial mistakes that can conceivably ruin their portfolios.

Do not stop your systematic investment plan (SIP): Whatever you do, do not stop your SIPs which are earlier running. However, you are free to shift your fund to a another theme, but do not stop them unless you really have to, say experts.

Avoid leveraged bets: Investors should not use influence to buy stocks either in cash or in the future market, advises experts. Leveraged plays should be avoided at all times exceptionally at times when there is heightened volatility in markets.

Don't put all the eggs in 1 basket, diversify: The correction has also made valuations a lot attractive in terms of PE multiple which is now trading at 18.5 times similar to that what we saw in 2014 when the rally started.

Don't focus on sectors, go for individual stocks,: Benchmark index might have fallen by about 7 per cent so far in the year 2016, but most of the individual stocks have recorded a double digit cut. Look for stocks where there is a visibility of earnings, stable management, perceptibility of earnings growth, strong pricing power or market presence, and can benefit from the fiscal expansion.

Don't write off gold, it's good for long run: In this Year, Bullion has been the best performing asset class. The price of bullion jumped 2% to a 7-1/2-month high, briefly nudging above the psychological level of $1,200 an ounce.
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Last Updated February 10, 2016