5 rules to achieve good risk-adjusted return in this market
Live MintThe current market is falling relentlessly and has breached the 16,000 mark. However, the current dip provides a good opportunity to add stocks and India is currently in a better position in terms of economic strength compared to its peers in the medium to long term. Investors must be cautious during these volatile times and follow these five rules to achieve good risk-adjusted return: Buy for the long term: Control over our emotions especially greed and fear is necessary, having a short-term mentality is dangerous as investors might get stuck in fundamentally poor stocks or at a very high price. Perform due diligence: Investors must perform due diligence before investing and investing in those stocks where they have a complete understanding of the underlying fundamentals. Take advantage of the dip to enter into quality names: The current scenario, where the environment is full of uncertainty and negative sentiments is the best time to add stocks that have good fundamentals, growth visibility, competitive advantages, and reasonable valuations.
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Risks are unavoidable. Let’s invest responsibly!
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