“Health is like money, we never have a true idea of its value until we lose it.”
BY HARDIK GOEL | 2 Mins Read
Stock
markets experienced a major downfall last week and they look set for another
volatile week ahead, as the implications of a rising Coronavirus outbreak in
India and slumping oil prices spooked investors. The downturn marked a dark
time for those with a hand in the market and sparked anxiety, especially among
new investors, who had been riding high on continued market rallies over the
recent years.
However,
we all know this is not the first and won’t be the last big market-dip of
Indian markets. While there’s blood on streets right now, a prudent investor
can find various good opportunities to get their investment strategies in
check.
We recommend you
the follow four pillars to preserve your wealth in this epidemic:
1. Invest for the long-run — confirm you've got
three-to-six months' earnings saved in cash for a rainy day, because any cash
you invest within the market ought to be locked away for long-run goals.
2. Contribute bit by bit — invest a set total
regularly into the same investment product over a long-term period. This
permits you to buy additional units once the value is low, and fewer once the
value is high. It is a strategy referred to as dollar-cost averaging.
3. Make
the most of compound interest — Time in the market is more vital than timing
the market. Earn interest on the interest you receive by jutting to a
disciplined investment plan.
4. Diversify, diversify, diversify — consider
affordable, passively-managed index funds or exchange traded funds(ETFs), that
provide you with exposure to a broad vary of stocks.