Shield your portfolio from covid's another phase!

The second wave of COVID-19 in the country has again turned down the market. However, the condition is not that bad as it was in 2020 but even then the market recovered. You should take some compulsory steps to plan your finances right during this crisis.

Shifting to Digital Transaction

Due to massive restriction of economic activity digital platform is most suited for protecting ourselves against spreading infection.

With efficient use of technology we are providing all financial services digitally i.e through our app MF Uncle .Even for first-time users and investors, signing up is easy and all your transactions are secure  with bank level security as MF Uncle app runs with transaction gateway of BSE Star MF (Bombay Stock Exchange Ltd).

It is said that investors often feel the pain of loss more acutely than they feel the pleasure of gain.

Market volatility can cause you to take irrational decisions that could impact your financial well-being. So shield your portfolio against this second wave covid by taking corrective measures.

Focus on your goal

It is always advisable to align investment with your goals. If the goal for which you are investing is still at least 3-5 years away then there is no reason to think about redeeming or stopping your investment. Remember, frequent disturbance of the portfolio can do more harm than good to your long term plans and you may risk falling short of your financial goals. Use our goal planner section. https://giisfinancial.com/planning/

Risk Appetite

Depending on your risk appetite, financial goals, and investment horizon, your portfolio must be spread across a range of assets such as equity, debt, gold, and cash. Historical data suggests that no 2 asset classes move in the same direction always. When equities fall other asset classes such as gold may witness a rise in prices, and vice versa. Once you have decided on your personalised asset allocation plan stick to it regardless of the market conditions and rebalance if necessary to earn better risk-adjusted returns.https://giisfinancial.com/basket/

Diversify

Just like it is important to spread investment across assets classes, it is equally important to invest across various sub-categories and investment style. Invest in a well-diversified portfolio of equity funds containing Large-cap Funds, Large & Mid Cap Fund, Multi Cap/Flexi Cap Fund, Mid Cap Fund, Aggressive Hybrid Fund, etc. By diversifying investment across market capitalisation you can benefit from the stability of large caps and the high growth potential of mid and small caps.

Avoid timing the market

Market conditions are affected due to economic, political, social, and other factors .So instead of trying to time the market for your investment, opt for the SIP mode of investing in mutual fund http://giisfinancial.com/index.html#power-sip .This will save you from the worry of timing the market. As you purchase more when the price is low, you are rewarded with higher returns over a period of time. You also benefit from low investment cost and the power of compounding of wealth.

Review you Nominee

Make sure to review your nominee at the time of your mutual fund investment and the nominee you choose should be in your blood relation or dependent.

Term Insurance

One should must have the benefit of term insurance for sum assured equals to their financial liability as among all the insurance term insurance is the  life insurance which provides highest coverage for the minimum premium during the "term" of the policy.

Rebalance your portfolio

Periodically rebalancing your portfolio will line up your investment with their goals. It will adjust your financial risk and open doors for fresh allocation. If your risk tolerance or investment strategies change, you can invest more in under represented asset classes until you achieve the overall allocations according to your want. 

Remember, a sensible investment approach leads the path to wealth creation and is always good for your long-term financial well-being.

To know more 

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

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