Demonetisation & Your Investment Decision

12.11.2016

Greetings from InvestmentMitra!

Post US election & Modi's bouncers, share markets are expected to remain volatile at least till March.

Because of demonetisation a lot of money is likely to chase equity & bond markets for next few months, which may push these markets upwards.

Federal's move on interest rates, holiday season in US & Europe, third quarter corporate results & above all union budget on 1st Feb will keep markets volatile.

There will be many other unpredictable events which will impact stability of the markets. So what should an investor do in the current situation. In our view the investor should:

a. Not fall for short term temptations. Invest rationally.

b. Buy government, tax free & good quality corporate bonds for period upto 3 years.

c. Stagger your equity investment over 6 to 9 months. Use STPs in mutual funds for the same.

d. Invest 15-20% of available long term surplus when sensex breaches 26000 & keep investing like this every time sensex is down by 750-800 points below these levels.

e. Book profits if sensex breaches 33000 by January 2016 i.e. in very short period.

Please do post your queries, if any and we would be very happy to answer the same.

Happy Investing!

Comments

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