March 1, 2024

smart management for slow down

The last few weeks have been difficult for smart investors. Surprising in all asset classes fluctuation is shown. A few days before the carnage in the stock market chaos, while the last five trading sessions, it remains bullish. The blue-chip stocks are too volatile is considered. The shocking debt market fluctuation is shown. Gold could not miss it. Asset class, large fluctuation was caused by the introduction Rs. This year, the biggest fall in the rupee was two weeks ago. However, Raghuram Rajan’s new central bank governor has since become a good recovery. The level of the stock market has risen to 20,000, but is still significantly reduce the cost of several stocks. Over the coming days, you should do your portfolio?

Be Prepare
If you buy the latest gadget or were thinking of getting the house painted, it just would not be right to do so. The value of the rupee against the dollar is still low. The domestic budget could worsen in the coming days. EMI and on living after spending much money you can not survive. Do not expect good next year increments. Economy is a mess. The companies will focus on cost control. There are also fears in some sectors of the salary cut. The more you focus, where possible, should be on saving. Financial Mall Neeraj Chauhan, CEO, said, “Lifestyle as a cut in expenditure possible, should be.” Postponed purchase of luxury items. If you have taken a loan, you should try to repay it as soon as possible. The more cash you will be in tough times.

Watch Target
According to the advice of those who Adwaijr Financial Assets put money in something , they should remain in it . Financial Freedom Sumeet Vaid , founder and managing director , said: ” I ​​recent declines in asset classes that should not affect the long-term goal . Your long-term goal still has not changed . ” Significant stock market fluctuation confidence of small investors in the round is over . Thus, they often make the wrong decision . India and South Asia at Standard Chartered Bank general manager Vishal Kapoor , wealth management , ” heavy fluctuation in the round track many times we seem to investment by the hour or day . It does not work . ” For instance, small investors SIP fall in market close . This is wrong . They find not take advantage of the low price of the share . SIP to achieve a particular goal you have to start . If you close it , it will not achieve the goal .

The necessary planning
Economic slowdown than before the change in the investment plan should strengthen economic fundamentals . If you have not already done so , immediately Create an emergency fund . You must also have the correct insurance cover . It is a financial protection to families in difficult times . If your income stops for some reason , the emergency fund can come very handy . This will help you get out of bad times . After job loss or accident it can save you money . Ideally, the monthly expenditure of less than 6 months should be kept separately . Renu Pothen Head of Research said: ” This money should be kept in liquid funds . If you leave it in a savings account , then it will get very little return . ” So as to obtain insurance required. If you do not have insurance , your wealth may be lower when the accident . Be admitted to the hospital or a medical emergency insurance cover provides protection from . Get adequate insurance cover for self and family .

Portfolio Review
Market fluctuation , according to the investment plan will not change . However , experts say that at a time , you should definitely review the financial portfolio . According to the return of the portfolio may take some Ajastment . For example, if you were expected to rise 10 per cent next year in salary , so it may need 7-8 per cent . According to some financial goals you can change your Priority . If you’ve already made ​​plans to go on holiday , you can ignore it . Instead it is more important to focus on financial goals . Like – for children’s education . The purpose of this review to re investment portfolio – is to balance . Market fluctuation may be due to the balance of the portfolio has deteriorated . Therefore it is necessary to fix it .

If you do not feel right balance of the portfolio , it should change according to the old plan . You should note that investment in all asset classes . Returns instead of thinking about how much further it can be created , you must change the old portfolio according to plan . Recovery comes in the market , it will benefit you .

Stock exchange
Stock market fluctuation is common . Investors should be prepared for it . However , many times the situation has become such that it is difficult to accept him for smart investors . For example , while the decline in blue-chip stocks would you do? They are considered so safe . One day last month declined by 20 per cent in BHEL The company ‘s June quarter results were very poor . It was a great sailing . Last week, HDFC , HDFC Bank , respectively, declined 7.7 per cent and 8 per cent These institutions are known veteran of both countries . They hardly fluctuation is observed . Sensex down 590 points in one day , so it is naturally worried . Blue-chip stocks in a weak market , many investors feel safe . Until recently, this strategy was working . There was tremendous Sailing in the Midcap and Smallcap stocks , blue chip stocks were stable . However , these past few days have shown good recovery . Investor should do in these circumstances ? More stock market fluctuation is not wise to sell their shares . Even if their performance is going bad .

This is the time to create something Investors should buy quality stocks , which are going to get it for cheap . However , doing so would not be worth the money together . Investors also from time to time should be the right opportunity to buy quality shares . Head of Private Client Group Research at Kotak Securities deepen Shah said , ‘You should identify those companies which do not have much debt . Whose cash flow is good and the people who run them are falling away from controversy . ” Should not invest in such companies , which have much debt . The companies on corporate governance to be questioned , should stay away from them . Edelweiss Financial Services Ambareesh Baliga , managing partner of the Global Wealth Management , said: ” When a decline in the stock market can focus on dividend yield strategy . At such times the best and highest paying dividend stocks can be purchased . ”

Strong fundamentals of the companies and the profit margin is good, they offer regular dividends . When you invest in a few companies , you will remain consistent dividend income . In the bear market even if there is capital appreciation , but shares of companies with high dividend yield portfolio to protect . In the fall of dividends too. This strategy is beneficial only when stocks are running low and the price is getting higher dividends . Investors do not have a tax on dividend income . So for Medium to Long Term Investment 30-40 per cent of such shares may be the right strategy . However , it has some disadvantages . Stock Investors also very deliberately buy . It must see to it that the company’s dividend record is? He is paying a dividend of at least 5 years ? Additionally, much of the profit as dividends to shareholders, giving ? If it is high , it means that the company is Profitable . And he will continue to further dividends . Defensive stocks may also be purchased .

However, the FMCG stocks are quite expensive , but there are some pharma and IT stocks cheaply . Shah says , ” IT , pharma and FMCG stocks are safe . The value of money is less chance of gaining profit from them . ” Those who invested in equity mutual funds is the way , they must maintain their investment . Your investment in such schemes should be the way , the record is good . Investors especially in such a scheme can continue to invest through SIP . This decline in the stock market will have a chance to buy cheap stocks . Discipline those who are interested in equity investment , in the long-term benefits .

Fixed Income
All asset classes when the prices are low , people prefer to invest in fixed income instruments . Heavily in equity market fluctuation , given the debt is safe . However , some recent developments show that the debt market is not so safe . In the past 2 months, 10-year government bond yields considerable fluctuation occurred . Occasionally a day to 0.50 per cent fluctuation seen it . However , this sometimes – rarely happens . Bond funds heavily in the net asset value fluctuation is observed . Even considered extremely safe decline in net asset value of liquid funds . So who put money in fixed income instruments should do ?

If you want safety , even with the tax benefit , the tax – free bonds to invest in would be nice . Yield The average yield of government bonds with the same maturity period is attached to . AAA -rated government benchmark bond companies around 0.55 per cent on its bonds that offer lower returns . In the past few days, the 10-year government bond yield of 8.2 to 9.2 per cent , while retail investors on AAA corporate bonds can expect 8.6 to 8.7 per cent . REC on its 15 -year bond is offering just 8.71 per cent . The issue can also offer good returns .

Tax – free bonds to pay tax on returns from the Investor . This is because they are better than FD . Investors sell them in the secondary market has the opportunity to achieve capital gains . In the coming days if the yield is low, the price of the bond will grow. This will be the capital gain . Interest rate will further increase or decrease ? The answer is very few people possess . The Fixed Maturity Plan (FMP ) may be a better bet . The risk has increased the debt fund , the FMP returns you can lock in today future date . Indeed , it is easy to calculate returns in FMPs . However , it is not guaranteed return . These are close-ended funds . This means that they have fixed maturity period . FMP is putting money in short-term paper – such as money market instruments , certificates of deposits , commercial papers . Right now they are offering 10 per cent returns . This means that tax returns can be achieved before the FMP is too much . This means that investors throughout the year to achieve a 10 per cent chance .

Tax -wise, the FMP is the best product . FMPs of more than a year to get the benefit of indexation . This means that investors have to pay tax on the Infleshn removed . Safety of investment is necessary to take care of them . AAA-rated bonds are considered the safest . However , the bonds AA + is still considered safe . Tax free bonds or choose FMP ‘s also important to take care of the time period . Besides, you can continue to invest in NSC and PPF . These products are safe and offer guaranteed returns .

Gold price has been reduced by 25 per cent for some time , but after it has excellent recovery . The price of gold reached a record level last week . However, the decline thereafter . However , due to the price of gold in the value of rupee against the dollar was 20 per cent . Yet people still value gold investments are safe . And such demand may increase in the coming time . But remember, you can not continue a steady rise in the price of gold . Experts say that gold should be used to Daywarsifai portfolio . It is not linked to other asset classes . It just gets in the portfolio some stability . If you plan to 10 per cent in gold investment is made ​​, it should spend more money out of it .

Real Estate
If you are thinking of buying a house , then it is time for you Golden . According to the National Housing Bank Rejideks , including 26 of the 22 cities house price has fallen . The residential property price fluctuation tells about . Due to the economic slowdown has reduced the price of the property . First quarter GDP growth of 4.4 per cent in 2013-14 , which is the lowest in the last 4 years . Job loss are on the rise and expected next year increments Anployij is not good . This has reduced consumer confidence and reduced demand for properties . Increased property value of inventory is decreasing . Executive managing director of Cushman & Wakefield South Asia Sanjay Dutt said , ” In the past few years, many real estate projects have been launched . This has increased the number of homes sold in many cities . ” However , investment in real estate market to take care of a few things before . Of course the price of property has declined , but it ‘s still too much in terms Absolute .

In the coming months and may lower the price of property . Indian economy is undergoing now is the worst since 1991 . Revive the economy on track to return to the market . Most experts say that after the elections in May 2014 will come out again in the realty sector . The other thing is that home loan rates are on the rise . HDFC , ICICI Bank , Axis Bank and YES Bank has increased its home loan rates . He has a 0.25 per cent increase . HDFC home loans up to Rs 30 lakh to take 10.4 per cent . However , more than 10.65 per cent interest rate for home loans . Plan Ahead Wealth Advisors chief financial planner in Mumbai Vishal Dhawan said , ” If you have surplus cash and the job is secure , you should buy the house . ”

In families where one person does the job , it must take precautions in this case . Home Buying in increments of good hope next year will be fine. Next year increments could be lower than you expected . There’s just barely . So, your income and your home loan EMI should not be more than 25-30 per cent . Builder upto now many are trying to reduce inventory . In the scheme , known as the 80-20 and 75-25 had become quite Population .

Bayer 20-25 per cent of the value of the scheme in early returns . However , the rest of the money the bank pays the builder . However , these schemes over the RBI has cautioned both customers and banks . If the builder does not default on interest payments , it will damage the credit rating of Bayer . In this scheme, the bank will pay Apfrent builder . It is not the money to the builder on construction . If the builder does not complete such projects , which increases the risk for the bank . Managing Director of Capital Markets at Jones Lang LaSalle India, Shobhit Agarwal said: “The RBI also in this case to protect the interests of buyers cautioned banks . Interest in Financial Institutions At the same time he also wants to keep safe . ” Slowdown has also impacted on the rental demand . Many retired people your monthly expenses by renting home run .

Selling a home is not easy even in times of slowdown . Bayer markets are very low at this time and they ask for discounts . However , due to high rate home loan EMI ‘s two ways you can reduce the burden . If you have the extra money comes from somewhere , so that the loan can be repaid . However , if you allow the budget , saying the bank will help increase the EMI . This will reduce your interest costs . New buyers should take a floating rate loan . Florint home loan rate is fixed and varies widely . Second, to support the rupee, the RBI Governor Subbarao had raised short-term interest rate . Can go back to having a stable currency . The floating home loan rate will reduce .

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