Why stock markets are crashing and what can retail investors do?
The retail investor is the proverbial lamb which had been made happy only to be slaughtered
The markets have crashed - Quantitative Easing Reversal, Hardening Yields, Rising Crude, Rupee Depreciation, Corporate Governance issues at the likes of IL&FS, Yes Bank etc
FIIs have been net sellers and DIIs have salvaged the market - Retailer's SIP money, NPS, PF corpus keeps the market afloat
Individual stocks have corrected 40-50%
Let us be circumspect about Mutual Fund also
Lets not try to time the market but rather buy a little quantity at each level
Stock SIP works wonders - e.g. a stock like Pidilite but needs great investment discipline
I invest in ELSS schemes of MF even though I dont need Section 80C benefit - because historically returns have been better- fund managers can take a 3 year view e.g. Birla Tax Relief 96
Also trying Investment in Liquid Fund and daily STP into MF
Please be cautious before relying on whatsapp tips and stock recommendations - the ones who recommended Maruti at 9500 for a 10,500-11,000 target , now trading at below 7,000
The ones who were bullish about NBFCs - that just lent crazy volumes of easy money
be also careful of debt free FMCG companies - because of the expensive valuations
Its your hard earned money
