SANITISING YOUR PORTFOLIO

Volatility is often considered the hallmark of equity investment. The stock market has had its share of yo-yos in the past as well, but the current phase seems to be prolonged like never before. A large number of stocks are expected to decline in value once the correction occurs. The economic downturn mirrors the fear and recession concerns due to business slowdowns (or shutdowns in many cases) and loss of jobs amidst the second wave of Covid-19. So much so that even regular investors with a penchant for equity and equity oriented securities and high-risk mutual fund portfolios are now changing their focus as well — from capital appreciation to capital protection.

Managing Finances

Experts say the resulting panic should not influence one’s financial decisions. Instead, they advise portfolio reshuffling and diversification to meet future needs and goals.