Volatile markets can make even a seasoned investor jittery. So, what’s the right investment option for you while staying relatively safe from volatility? Read on to make an informed decision for yourself.
We often hear that concentration builds wealth, while diversification preserves it. Let’s look at well-diversified smallcases that are resistant to volatility. Learn more about smallcases here.
Asset Allocation Strategies
This strategy ensures you divide your investments across asset classes to minimize investment risks. With smallcases, you can invest in three asset classes in 3 clicks!
- All Weather Investing – When equity markets are falling, this smallcase ensures you are diversified across other asset classes like gold and fixed income. When equity falls, gold prices tend to increase acting as a cushion for your investments. Fixed income, on the other hand, gives regular returns. This smallcase is ideal for all market conditions.
- Equity & Gold – This smallcase has Equity & Gold weightage in a 70% – 30% ratio. Gold is a very effective portfolio diversifier due to its negative correlation with equity and it is the best form of hedge against inflation. Start investing from Rs. 200 onwards.
Smart Beta Strategies
Smart Beta strategies aim to increase the return potential without increasing risk by using different screening criteria to apply weightage to selected stocks.
- Low Risk – Smart Beta – Research says that contrary to common belief, low-risk stocks have consistently outperformed high-risk stocks over time. This smallcase is constructed based on this paradox. It aims to generate high returns at low risks and is ideal for longer investing horizons.
- Quality Smart Beta – A smallcase with consistently performing stocks with a robust quality score. It aims at providing market-beating returns in the long run, while taking the least amount of risk. This smallcase is ideal for long-term passive investing.
ETF investing strategies
This strategy involves using ETFs. Exchange-Traded Funds (ETFs) are usually a basket of securities that follow an index. These baskets are very similar to mutual funds but are traded on the exchange like stocks. They are available at low cost & low risk in comparison to single stocks. With gaining popularity, ETFs could be the golden goose of the markets.
- Top 100 Stocks – This smallcase, consists of two ETFs that aim to provide index-linked returns at minimal risk. With these two ETFs, you would be investing in NSE’s 100 largest companies at just Rs. 500! These are ideal for long term investing without taking high risks.
With regular rebalances and SIPs, these smallcases are ideal investments even during turbulent times.
Volatility is inevitable while investing in equity markets. So, don’t let slowdown scare you away.
Targeted Keywords – Handling Unpredictable Markets, How to Handle a Painfully Unpredictable Market, Smart strategies for unpredictable markets, How to Invest In an Unpredictable Market?, Blackstone Legend Byron Wien on How to Handle, Staying Calm in Unpredictable Markets