Financial Meltdown in US ...... Impact on equity investors

With Bad news flowing in from US day in and day out, We are in a time of great uncertainty. So what should be the approach to equity / MF investment now???. This has become a common question.
Investment in equity especially through SIP in MFs is essentially avoid timing the market. Equity investments either made directly or through MFs should be made only with a long term time frame in mind. Not everything is assured with a long time frame but things evens out the over a longer time frame.
One who starts investing can start allocating to investment likes Debt, Post office investments initially and slowly move on to equity through balance funds. If such an approach is followed , even in time of crisis you need not liquidate your equity holdings in a hurry. Systematic investments during downturns may help you gain greater returns when the economy starts looking up ( remember we are just started going down now..it may take substantial time to go up).
So...If we follow a systematic bottom up asset building ( Debt to Equity... Lower risk to Higher risk) and have made informed investment decisions , we need not panic. If we have been doing trading in the guise of investing, this may definitely be a rough time.

2 comments:

team zibika! said...

ya but i feel in times like these its better if we go for cash to keep ourselves liquidated and invest in gold as it is the safest bet. since the future looks bleak at least for the coming six months, why lose your money on that.

Debt Consolidation said...

Invest in the new high yielding stochs like AT&T and ConEd. These stocks have come down with the rest and have big dividend payments

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