4 Common Mistakes to avoid while investing in Mutual Funds in a volatile market 🚫
Retweet (🔃) to spread awareness.
#investing #stocks
Retweet (🔃) to spread awareness.
#investing #stocks
1) Sector-specific bets 📍
In bull market, it may seem unwise to diversify your portfolio, when you are seeing some segment of the market is performing exceptionally well, but one gets the importance when the tide of the sector goes out and the prices start tumbling.
#business
In bull market, it may seem unwise to diversify your portfolio, when you are seeing some segment of the market is performing exceptionally well, but one gets the importance when the tide of the sector goes out and the prices start tumbling.
#business
The extraordinary returns of sector funds may lure you but remember they are also vulnerable to high losses.
So, it's always advisable to invest in a diversified portfolio, instead of taking concentrated bets on some sectors, especially in a volatile market.
So, it's always advisable to invest in a diversified portfolio, instead of taking concentrated bets on some sectors, especially in a volatile market.
2) High Small cap Exposure ⚡️
Small caps are one area of the market that has been severely impacted in this downturn. The Nifty Smallcap 250 has seen a fall of 22% year-to-date (YTD).
#smallcaps
Small caps are one area of the market that has been severely impacted in this downturn. The Nifty Smallcap 250 has seen a fall of 22% year-to-date (YTD).
#smallcaps
With heavy correction in this space, many investors believe that the space now offers attractive risk-return ratio ⚖️
However, smallcaps are more vulnerable in a bear market and thus your maximum exposure should not be more than 20-30%.
#assetmanagement
However, smallcaps are more vulnerable in a bear market and thus your maximum exposure should not be more than 20-30%.
#assetmanagement
3) Stopping your SIPs 🤫
Many people invest in mutual funds through SIPs, but with this route also some try to time the market by pausing their investments in a weak market.
This habit could prove to be your biggest financial blunder.
#SIP
Many people invest in mutual funds through SIPs, but with this route also some try to time the market by pausing their investments in a weak market.
This habit could prove to be your biggest financial blunder.
#SIP
The inherent feature of SIPs helps an investor to average out his total cost and this only happens when you invest at regular intervals.
4) Investing in funds that have crashed heavily 📉
The thumb rule of equity investing itself says buy low and sell high. But buying a stock or a mutual fund blindly because they are at low price is not a good idea.
#funds
The thumb rule of equity investing itself says buy low and sell high. But buying a stock or a mutual fund blindly because they are at low price is not a good idea.
#funds
Before investing in a fund, evaluate the investment strategy and quality of holdings, because it's not necessary that all funds which see correction in bear market will recover in bull market.
#BearMarket2022
#BearMarket2022
All these factors have been considered while picking mutual funds in Recipe.
Access our list of handpicked mutual funds here: recipe.finology.in/app/recommenda…
Access our list of handpicked mutual funds here: recipe.finology.in/app/recommenda…
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