With never-before-seen levels of market unpredictability brought on by the COVID-19 pandemic, many investors are hesitating from taking the plunge into the rough investment waters. But as the popular American motivational speaker Steve Rizzo said, “If you let fear of the unknown stop you from taking chances, you will stifle your true potential.” Sure, dipping into the volatile market and risking financial loss may deter some from making investments.
However, would you let go of the myriad opportunities market has for you because of this? Yes, even though the market headwinds seem unstable, with careful planning, you can turn the tide in your favour. You just need to be one step ahead of your investments in 2022! And here’s how you can do that.
Introspect, plan, invest
Before starting any SIP or buying any stock, sit down and examine your entire financial situation, including your current investments, pending loans, financial goals, and the overall market situation.
After that, you can work towards figuring out your risk appetite and investment goals. You can either do this by yourself or consult financial investors. Whatever insights you gain, just make sure you play the long game. Investing for the long haul will mitigate most short-term market risks and ensure consistent returns.
By doing this, you can figure out the best investments for 2022.
Additional Read – Why it is Required to Diversify Your MF Portfolio
Diversify, diversify, diversify
Historically, the returns from the three major asset classes – bonds, stocks, and cash, have never moved upwards or downwards simultaneously. Therefore, pooling your money across diverse investment classes can give you a greater edge than putting all your eggs in one basket.
However, there’s no compulsion to invest in different classes. You can diversify by parking your funds in different categories of the same class. For instance, if you’re comfortable with mutual funds, you can diversify by investing your money in different types, such as index funds, equity funds, debt funds, etc. This way, you mitigate the risk. So, if one of the funds face losses, you have other funds to rely on.
Keep track of your investments
Reviewing your portfolio regularly, in tandem with market changes, is essential to understanding where the market is headed and how it will turn out for you. Fortunately, there are many ways available today for keeping an eye out for your investments. You can do it yourself by keeping an investment journal or a simple spreadsheet. However, if you want in-depth investment insights and performance analysis, it’s best to use an investment tracking app, such as Tata Capital’s cutting edge Moneyfy app.
Accept and learn
Here’s one difficult truth – you won’t always gain money. Losses are as much part of investing as profits are. All you have to do is ensure that the latter is greater than the former.
If you hit a rough patch where all your investments are in the red, don’t fret about losing money due to miscalculation. Instead, accept the loss, analyse your mistake, try not to repeat it.
Additional Read – Investing in International Funds for Portfolio Diversification
Let’s face it; Without risk, there’s no reward and no one’s insulated from market volatility. But by following the above tips, you can carefully navigate the risky market waters and stay one step ahead.
If you want the best investment insights, log in to Tata Capital’s Moneyfy mobile app today. Download the app today and learn new investment strategies, know the best mutual funds to invest in 2022, and track all your investments successfully.