– Markets are in a turmoil, you should be investing in ‘safe’ assets that give guaranteed returns like ppf, nsc, bank fixed deposits.

– Do not sell all your equities, but do put some money in debt instruments, it is safe

– Do not worry about sector specific investments, but the sectors to be avoided are auto, infrastructure, etc. You should be investing in sectors like FMCG, Pharma, banking – because they will do well even in a slow down

– It is risky to invest in equities, so it makes sense to stop your SIP investments – remove it when the markets have recovered.

-real estate seems to be doing better than the equity markets so do take a long term view and invest in real estate

– averaging in good stocks makes sense, so if you have bought a good share at a high price, buy more of it, so that the average cost comes down.

-take a short term view of the market and invest in a one year FD..by that time the markets would have recovered…and you can buy equity.

Good show, congrats anchor…

  1. I don’t understand many analysts’ reluctance to averaging a stock.
    They say don’t average, it is like throwing good money after the bad.
    But I feel, if Reliance (or some x-stock) is a good buy at 1000, surely it is a better buy at 700 ! Or is it ?
    Warren Buffett says that he started buying Washington Post at $12 and ended up buying at about $7 ( he always bought in a staggered manner so as not to make it known to many otherwise demand would jack up the prices)
    May I know your views on averaging Mr.Subra ?

  2. A bit of more drama… Market has given you good opportunity.
    Sensex is trading at discounted price. People who have been waiting on the fence can now start buying. Investors with long term horizon can start buyig via SIP…

    The saga continues… Then comes the final word.
    The market is volatile. KEEP STRICT STOP LOSS???

    Take away : Invest in SIP way and have a stop LOSS????

    Investor Did you understand ? 🙂

  3. Banyan Financial Advisors

    Amazing advise – which keeps on changing based upon market situation. The best one which I like is “take a short term view of the market and invest in a one year FD..by that time the markets would have recovered…and you can buy equity” !!!!

    By that time Equity would not longer be attractive – all gains would already get priced in.

  4. Subra sir, I don’t understand why averaging is a “good” advice? Adding to what shrinivas wrote above, doesn’t SIP also do the same? Why not buy the good stock at a lower price if you have some extra cash to invest for long-term?

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