MARKET CRASH DUE TO CORONAVIRUS FEAR OR GREED

The biggest reason for the fall of the market is due to coronavirus. The virus that has spread to countries has put pressure on businesses and disruptions in supply chains around the world and has crashed the market drastically.

Coronavirus that reached shores leaded the global stock market slid to its worst loss. After China and US it has brought a huge downfall in Indian stock market.  Investors worldwide have the fear that the outbreak of coronavirus could cause a recession as it squeezes corporate profits.

The Indian stock markets have railed a lot but comparatively way less than China and US stocks as China being the main base of coronavirus and second economy which is impacted most after china is US because it is the biggest trade partner of China .The fact of the matter is the large scale are actually turning in our favour with crude falling and interest rates being low that would relatively hold Indian stock market in good place in long term.

What will you do - Will you buy the fall or wait out of fear?

The stock markets are volatile. A lot of small and mid cap funds were seen recovering in past few months. So as long as this risk remains unknown, till then the markets can surprise on the downside. The volatility and the valuation of the market are expected to come back to a good state which will bring the long-term investors back into the market.

So the investors should take it as an opportunity to buy the fall by investing part by part of their liquid money (For example if you have rupees 100 you can start investing part by part like rupees 10, 15, 20 …)   so as to get the advantage of market volatility and in long term this risky decision will give a huge profit.

What will you buy?

Investors usually want to invest in companies probably having growth and with lil profit margin. Investors can look for those companies in which they might see small revival. Even a small revival can give a much better return in those kinds of spaces and are beneficiary in long term.

You can use GIIS Financial tools or Our Android App  for Investment, tracking and Asset allocation planning. 

*Mutual Fund Investments are subject to market risk, read all scheme related documents carefully.

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