A lot of fluctuations are being seen in the stock market before the results of the Lok Sabha elections. However, in the last week, there was a good rise in the market. This market volatility has left investors confused as to what investment strategy to adopt in the market. Let us talk about this in detail:-
Investment strategy at this time
Investors should prepare their investment strategy keeping these fluctuations in mind. Experts say that there does not appear to be any major concern regarding the Indian market. If the NDA government is formed again, it will give a big boost to the market. The reason for this is that foreign investors have been selling for the last few weeks and after the formation of the NDA government, they will start buying again, which will boost the market.
Even if the election results are contrary to expectations, the market will recover from this shock in two to three weeks. Experts say that investors are advised not to invest for the short term at present. If they want to invest for the long term, they can invest in stocks of companies whose valuations are at attractive levels.
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Avoid big investments all at once
Investors should avoid making big investments at once. This means that they should not invest all their money at once but gradually. Investors who are investing in mutual fund schemes through SIP should not stop their SIP due to market fluctuations.
Even if there is a big fall in the market after the election results, it would still be beneficial for them to continue investing through SIP. Experts say that there are good prospects for Indian markets in the medium to long term. In such a situation, by closing the investment, investors may miss out on taking advantage of the boom in the Indian market.
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Invest in Large Cap Stocks
Experts say that at present, large-cap stocks are showing good prospects as compared to mid-cap and small-cap stocks. In such a situation, if an investor wants to invest, then the share of large caps should be more in his allocation. This ratio can be 60 and 40, that is, the investor should invest 60 percent of his money in large cap stocks and 40 percent in small cap and mid-cap.
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Disclaimer
We are clearly stating that we are not claiming any news or objective to be correct. The information given on this website is based on our long-time experience in the stock market. “If you wish to invest in any stock, please do your own analysis and seek advice from your financial advisor before considering any investment decision.”
