They say the right time to plant a tree was twenty years ago, and the next best time to see the seedling grow into a tree will be 20 years later which means you should invest NOW!<\/p>\n\n\n\n
Likewise in the markets too, invest and stay invested for the long term. <\/p>\n\n\n\n
Serious wealth creation happens only then.<\/p>\n\n\n\n
This question was clear until the Ukraine-Russia crisis happened and suddenly all of them started doubting!<\/p>\n\n\n\n
During such unforeseen situations, and under such extraordinary conditions of war it is difficult to make investment decisions.<\/p>\n\n\n\n
One can\u2019t predict a catastrophe but surely can be prepared or plan accordingly.<\/p>\n\n\n\n
In this blog article let\u2019s understand if the investment thumb rules change or remain the same during disaster situations!<\/p>\n\n\n\n
Impact on the Stock Market<\/strong><\/p>\n\n\n\n As every nation is interconnected with each other directly or indirectly the rattling impact surely was witnessed in the Indian Stock market.<\/p>\n\n\n\n The volatility tsunami started rising when the tensions between Russia and Ukraine took the limelight in the week gone by as military operations by Russia spooked investor sentiments. <\/p>\n\n\n\n However, they have seen a steady recovery in the benchmark indices on Friday, gaining a whopping 2.5%, even as Russia started progressing in the significant areas of Ukraine.<\/p>\n\n\n\n Not just that, the week ended trembling by over 4% compared to the previous week.<\/p>\n\n\n\n This volatility wave dance was an outcome of various reasons from military action against Ukraine by Russia where a sharp rise in crude oil prices and F&O expiry provided more power to bears in the Indian Stock Market.<\/p>\n\n\n\n The situation is expected to still spiral down as the severity between the nations are increasing.<\/p>\n\n\n\n Therefore, the volatility dance is expected to continue for a while now.<\/p>\n\n\n\n The Macroeconomic Statistics had a super busy week where it touched data points like domestic GDP and Manufacturing & Production PMI data.<\/p>\n\n\n\n As the Indian Stock market holds a lot of scopes, there is relief seen as FIIs are right now into buying the index future and stocks futures. The Put call ratio is right now sitting at neutral.<\/p>\n\n\n\n Crude oil prices are skyrocketing and trading higher than $100 per barrel. Note that this will add to the raw material costs and squeeze margins of India Inc. <\/p>\n\n\n\n What should Investors do?<\/strong><\/p>\n\n\n\n In such a volatile market, a sensible approach is to have a balanced portfolio with a mix of equity, debt, gold, and cash.<\/p>\n\n\n\n It is a perfect opportunity for investors to accumulate shares as the prices are low. <\/p>\n\n\n\n This is a golden opportunity for term investors to add or search for businesses with great fundamentals and take positions respectively.<\/p>\n\n\n\n When there is a global catastrophe accompanied by rising crude usually it is advised to na\u00efve or occasional investors to stay away or be on the margins.<\/p>\n\n\n\n Or sometimes they are advised to \u2018Not Invest\u2019 and wait for a while longer.<\/p>\n\n\n\n We are Jarvis Invest recommend staying invested without Artificial intelligence which helps you to come up with the ideal portfolio along with customized risk mapping. <\/p>\n\n\n\n To know about Jarvis click here<\/a>.<\/p>\n\n\n\n How should I plan my investments during such overwhelming situations?<\/p>\n\n\n\n Here\u2019s how to financially prepare during such turmoil.<\/p>\n\n\n\n Emergency Fund<\/strong><\/p>\n\n\n\n It is recommended to have your salary of at least 3 months of your salary as an emergency.<\/p>\n\n\n\n The emergency fund should be easily liquid and accessible.<\/p>\n\n\n\n One of the best ways to park it is in the liquid mutual funds in the savings account. <\/p>\n\n\n\n Note that this fund is important as it might come in handy if you and your family is caught in a crisis situation, be it from the personal, economical or medical front.<\/p>\n\n\n\n Equity Investments<\/strong><\/p>\n\n\n\n It is recommended to stay put with Equity investments for the long term. <\/p>\n\n\n\n If you have invested in fundamentally good stocks, there is no reason to worry because these stocks perform after such circumstances pass.<\/p>\n\n\n\n Therefore, it is better to keep this investment undisturbed. <\/p>\n\n\n\n Always remember, if the market continues to be volatile or if your investments go in negative digits, fundamentally good stocks recover in no time and the recovery is in multi-folds.<\/p>\n\n\n\n And if your portfolio has a high weightage for a particular sector, be patient, if the entire affected sector takes a while more to recover followed by your portfolio as a whole. <\/p>\n\n\n\n And it eventually happens in the long term.<\/p>\n\n\n\n Such a crisis situation is a good opportunity to have a look at fundamentally strong businesses.<\/p>\n\n\n\n Therefore, accumulating corpus and then investing in businesses during the time of market takeoff is an ideal way to reward yourself.<\/p>\n\n\n\n If you are a sophisticated investor, you can use your expertise to your advantage by using designing multiple hedging strategies.<\/p>\n\n\n\n However, if you are a naive investor and are sceptical of the situation around you are advised to invest with a professional because initially, it might seem easy and daunting but in the long run, this might affect your mental state and trigger panic selling and unwanted over-trading.<\/p>\n\n\n\n It is better to wait and watch or invest with Jarvis.<\/p>\n\n\n\n If you are considering portfolio investing for the long term here<\/a> are the rules for you.<\/p>\n\n\n\n Mutual Funds<\/strong><\/p>\n\n\n\n Volatility is the greatest enemy of your portfolio\u2019s health. <\/p>\n\n\n\n It not only affects investments but also the morale of the investors and is the main trigger for panic selling.<\/p>\n\n\n\n Seasoned investors recommend rupee-cost averaging and thus get benefitted but in a true sense, one must not blindly follow the popular saying \u201cbuy at every low\u201d.<\/p>\n\n\n\n If you have chosen to invest there are two schools of thought, Oh! Rather three.<\/p>\n\n\n\n First, make a lump investment and stay put until the market recovers.<\/p>\n\n\n\n Second, if you are sceptical go for Mutual funds.<\/p>\n\n\n\n And third, invest with us, Jarvis Invest!<\/p>\n\n\n\n Click here<\/a> to understand why investing in Jarvis is a wise choice!<\/p>\n\n\n\n