Should i invest now ?
Should i postpone my investment for few more months ?
The lingering question which will be there irrespective of market being in bull or bear phase. When in bull phase, you want to wait for the market to correct a bit to enter at the right price. When in bear phase, you may want to wait to find the bottom which is not known to anyone.
When can you invest ?
“The best time to plan a tree is 20 years ago and the next best time is now”
This is the chinese proverb and it suits everyone in every part of life. You may not know anything about investing, but the moment you came to know about right investing, you should start doing it now. It is not of any use if you look at the past returns of these companies and waiting for it to buy again at right price. All the companies which were not able to withstand the momentum of growth will wither away automatically. You can find the best one for now and stick to it for long term.
At the present moment, it is wise to choose value stocks at its intrinsic value. Value investing may not give constant returns at every interval, it may take time but for sure it will give returns better than momentum stocks. All you need is patience to buy a stock or to accumulate over a period of time.
Current scenario ;
Global economy was plagued with trade restrictions. Brexit is surrounding European countries. Trade dispute between China and US is also impeding growth and fuelling slow down. Tension in gulf countries is escalating which affects crude oil prices.
In India, the stable government is expected to fuel growth instantly. Immediately they had also set an ambitious target of 5 trillion dollar economy by 2025. It is almost double the size in 6 years.
NBFC crisis which is getting triggered one after the other, followed by liquidity crisis has affected consumer sentiment. Most of the stocks which is in consumer durables are downgrading their outlook for next 2 quarters. Auto sector is already facing headwinds in their production and there are job cuts across the industry.
Looking at the current scenario future outlook is not bright. There is darkness everywhere. You need to believe that there is light at the end of the tunnel and keep moving(investing).
This is the time to buy good quality stocks at intrinsic value, you can track the quality stocks and start accumulating from now on.
Steps to invest your amount now ;
Instead of having an amount in your bank account now and earning merger 3.5 or 4% interest rates, it is wise to invest as below, have a mix of debt and equity for average returns of more than 10%,
- Invest a portion in corporate fixed deposit \ NCD for better interest rates
- Use part of your investment in debt or hybrid mutual funds
- Find value stocks at its intrinsic value and keep investing.