03 Nov 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:-
- For customers who have seen sharp growth in their wealth, you should look at asset re-balancing. Time to reduce equity.
- 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.
- 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
Himadri Mukherjee
Posted at 13:35h, 03 NovemberI 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 NovemberSector specific investing isn’t a part of my arsenal. I wish you the best of luck
SUNIL MORE
Posted at 13:37h, 03 NovemberGood suggestion sir thanks
Sureshkumar pursnani
Posted at 14:03h, 03 NovemberGood suggestion
Thanks
DEEPAK khandelwal
Posted at 15:19h, 03 NovemberThanks sir for such good suggestions
PRIYANKA WANI
Posted at 16:30h, 03 NovemberThank you Sir for awaring us with the current market situations.
Anuradha Kannan
Posted at 17:09h, 03 NovemberNice suggestion will be helpful in our career
senthil kumar
Posted at 03:47h, 04 NovemberWill be there any market correction?
Dhramendra Satapathy
Posted at 09:23h, 04 NovemberAnything is possible. We have to stay prepared
Dhanesh Advani
Posted at 12:08h, 04 NovemberCan we suggest STPs in different Schemes and funds… from LIQUID TO EQUITIES and Some Sector funds
Dhramendra Satapathy
Posted at 17:07h, 06 NovemberNot sector fund according to me
VT BHASKER RAJEEV
Posted at 05:09h, 04 NovemberThis type suggestions and advices mostly needed to our advisor. Thanks sir.
VT BHASKER RAJEEV
Posted at 05:10h, 04 NovemberThanks for your valuable suggestions on time.
Girish Kulkarni
Posted at 05:38h, 04 NovemberVery nice sir
Thanks for valuable guidance
Prabhakar Bembalgi
Posted at 10:52h, 04 NovemberTimely valuable suggestion
Dharmendra Mehta Jamnagar
Posted at 02:13h, 05 NovemberStick 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 NovemberI am coming across such situations. Thank you very much for your guidance ..?????
Ganesh Kothatha
Posted at 16:18h, 25 DecemberWhat a timely advice guruji….Really worth one???