Raging Bulls - Next Level Education
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Raging Bulls

Raging Bulls

The bulls are on fire. The markets are rocking. People have made stupendous returns. Like always some people seem to believe the party will never end. Like always those who shunned away from the market, are dying to invest. For any Financial Advisor, these are good times indeed. But at the same time, if the Advisor does not manage his clients well, especially in times like these, he or she may as well walk into a trap. While nobody can predict the near future, we know that the long term looks good and investing should continue. We also know that while markets have gone up considerably, nothing can keep rising infinitely. It has to slow down, correct itself; or experience turbulence.

In short, uncertainty is very much present, and hangs like a Damocles sword at all times.

One may consider employing the following steps in current conditions:-

  1. For customers who have seen sharp growth in their wealth, you should look at asset re-balancing. Time to reduce equity.
  2. For long term SIP customers, one may consider switching their corpus into an asset allocation fund, like Balanced Advantage kind of schemes if goals are still at a distance, or, in a Equity Savings Fund if the goals are near. However they need not stop their SIPs. The process should continue because of markets correct they might as well smile a little more.
  3. For new customers, one should ensure that their initial experience isn’t unpleasant. Hence a mix of SIP, Balanced Advantage and Equity Savings kinds of funds would be good to start with.

Please bear in mind that in investing, there isn’t any guaranteed path. This is because the future always remains an enigma.

Different  advisors may have different ways of looking at things with sound reasons. Therefore please treat this as one such approach.

Author: Dharmendra Satapathy at NextLevel-Education

17 Comments
  • Himadri Mukherjee
    Posted at 13:35h, 03 November Reply

    I would suggest investors go for sector specific funds. Presently, IT and Pharma sectors look underpriced. Even banking sector will revv up.

    • Dhramendra Satapathy
      Posted at 09:24h, 04 November Reply

      Sector specific investing isn’t a part of my arsenal. I wish you the best of luck

  • SUNIL MORE
    Posted at 13:37h, 03 November Reply

    Good suggestion sir thanks

  • Sureshkumar pursnani
    Posted at 14:03h, 03 November Reply

    Good suggestion
    Thanks

  • DEEPAK khandelwal
    Posted at 15:19h, 03 November Reply

    Thanks sir for such good suggestions

  • PRIYANKA WANI
    Posted at 16:30h, 03 November Reply

    Thank you Sir for awaring us with the current market situations.

  • Anuradha Kannan
    Posted at 17:09h, 03 November Reply

    Nice suggestion will be helpful in our career

  • senthil kumar
    Posted at 03:47h, 04 November Reply

    Will be there any market correction?

    • Dhramendra Satapathy
      Posted at 09:23h, 04 November Reply

      Anything is possible. We have to stay prepared

      • Dhanesh Advani
        Posted at 12:08h, 04 November Reply

        Can we suggest STPs in different Schemes and funds… from LIQUID TO EQUITIES and Some Sector funds

  • VT BHASKER RAJEEV
    Posted at 05:09h, 04 November Reply

    This type suggestions and advices mostly needed to our advisor. Thanks sir.

  • VT BHASKER RAJEEV
    Posted at 05:10h, 04 November Reply

    Thanks for your valuable suggestions on time.

  • Girish Kulkarni
    Posted at 05:38h, 04 November Reply

    Very nice sir
    Thanks for valuable guidance

  • Prabhakar Bembalgi
    Posted at 10:52h, 04 November Reply

    Timely valuable suggestion

  • Dharmendra Mehta Jamnagar
    Posted at 02:13h, 05 November Reply

    Stick to asset allocation
    According to risk appetite of investor
    One may book profit through switching the fund like balance ADVANTAGE and equity savings.
    One can also go for SWP way to book profit.

  • Sudhir Birari
    Posted at 16:08h, 05 November Reply

    I am coming across such situations. Thank you very much for your guidance ..🙏🙏🙏🙏🙏

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