'People become guided by emotions, fear of missing out, and greed. They tend to invest in booming sectors that may prove exceptionally expensive.' 'Typically, that represents the peak, and subsequently, they lose substantially.'
Gripped with fear as an investor following a 12 per cent market fall? Here's Radhika Gupta's advice to investors.
'Such big falls are quite frequent these days, so do not try to time this market.' 'Use big dips to accumulate quality stocks.'
'This is a good time to restructure your portfolio because the sectors and stocks that performed in the last bull market may not perform as much now.'
'If you are invested in mid-cap and small-cap stocks, even if you are making losses right now, it is better to sell them now and sit on cash.'
'Long-term retail investors should not worry about these sharp dips and jumps if they have chosen their stocks wisely.' 'Short-term volatility is a given and a rise and fall of two-three per cent should not worry them.'
'Reduce your equity allocation, put that allocation into gold and fixed income.'
"What would be your advice for investors?" 'Keep it simple. Don't panic.'
'Indian markets may initially react and follow the pattern of US and other global markets post US elections.'
Fund houses conveniently forget to inform investors of the various risks that arbitrage funds are susceptible to.
There are few strategies to invest safely in a volatile market.
According to Rahul Rege, business head (retail) at Emkay Global Financial Services, it is difficult to track more than 10 stocks.
Even retail investors are talking about investing in start-ups.