Volatile Markets – where to invest?

The markets are volatile in the short to medium term with a downward bias. In such a situation where does one invest especially if he isn’t a regular and does not want to delve in shares ?

Some ideas for investing ur hard earned money are :-

for Safety:

1. In Fixed maturity plans or Bank Fixed deposits… or in short term debt or money mkt mfs

2. In Gold or Gold Miners MFs

3. In Income funds , Mips,  gilt or debt funds

In mutual funds

1. Index funds or index plus funds that track the index.

2. Equity diversified funds or Balance funds

3. Arbitrage funds. or Funds like the JP Morgan Alpha fund(very interestg new fund) or a structured fund like  ICICI Prudential S.M.A.R.T (Structured Methodology Aiming at Returns over Tenure)

for higher risk/returns  mainly for the more sophisticated investors

1. Investing in ETFs or exchange traded funds that mirror the indices like SPIcE (Sensex Prudential ICICI ETF) or UTI sunder

2. Going contrarian and buying good blue chips and midcap stocks when markets crash

3. Using Derivatives to go long / short on individual stocks or Markets in General and in MiniNifty

Well there are still lots of options but each person has to decide his investment strategy. Please do comment on what u think is the best strategy u think one should adopt.


4 thoughts on “Volatile Markets – where to invest?

  1. Buying every month, and restricting your portfolio to a manageable handful of equities is a good idea, provided you can keep putting in dough every month. Or get into the MF SIPs.

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