When volatility becomes the norm in equity market, here’s what to do

Markets have been quite volatile in recent times, but instead of seeing it as an adversity, volatility deserves to be seen as investor’s best friend. While investors tend to stay cautious in the market during such volatile times, they must appreciate that such market corrections also give them an opportunity to invest at better valuations.




Studies for a long time have been highlighting the importance of asset allocation for long-term portfolio performance. While different asset classes  ..

Usually, the equity market tends to perform well in an expansionary economy, while debt market tends to perform well in a contracting economy. As such, having a mix of both equity as well as debt can help mitigate the investment risk to a large extent and can help sustain during volatile times. Thus, investors can consider investing in hybrid funds to diversify their portfolio through a single fund.

Hybrid funds refer to that specific category of mutual funds that enjoy the flexibility  ..

A hybrid fund, therefore, allows investors to lower their investment risk, while also letting a lower proportion of the portfolio exposed to deep market corrections. It helps the portfolio bounce back from lower levels at a much faster pace. An analysis of the performance of the benchmark indices from the period before the global recession substantiates the utility of hybrid investment strategy. If you had invested in January 2008, the relative performance of hybrid funds (represented by CRISIL  ..

Hybrid funds tend to adopt a multi-cap strategy while considering their equity investments, instead of staying biased towards any specific sub-segment. As such, the fund is flexible to invest in all investment opportunities that come along the investment journey. The debt portfolio is constructed after proper research and a threshold of certain credit rating, generally AA and above.

Mutual funds, as an investment option, also provide the facility to invest on a periodical basis through  ..

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