Saturday, September 8, 2018

Investing in Balanced Fund could help you negate market correction

As per the current market situation. It is expected that market correction might happen after a long period of sustained bullish behavior in the market. As correction is a cycle, it might be coming very soon now.

Correction might be a possibility due to the current market news which includes falling ruppee, increasing crude oil prices and possibility of trade wars due to possible imposition of tarriff barriers by US on Chinese imports coupled by China's possible retaliation measures on this.

If you are investing in equity mutual funds, then possibly equity stocks might take a dip in the short term due to possible stock market correction. In the mean time, in order to preserve your capital you may look forward for balanced or hybrid funds which have at least 65% of debt components under it's asset.

Even though Equity funds give a higher return, but they are equally risky. And at the time when market is experiencing possibilities of correction. It would be wise to balance out your investment portfolio with debt funds to average out any possible implications of downtrend in equity market.

(Disclaimer: Investments in Stock Market is subject to risk. Please exercise your options carefully before investing. )

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