Investing Strategies for the year ahead

The upheaval in the global economies and the resultant massive downturn in the stock markets through 2008 and early part of 2009 saw a section of equity investors exiting from the market in a panic. Besides, there are investors who have been waiting on the sidelines to invest at lower levels. Both are at a crossroads today. While the panic sellers are still ruing their rash decision, the fear for the fence sitters is a result of unpleasant experiences of the past. So, what should investors do in such a scenario?

In the present market conditions, the crucial part is to adopt the right approach and select the right investment options rather than following a strategy whereby one takes aggressive decisions in order to make up for the lost time and opportunities. The major issue, therefore, is to manage expectations and not allow one’s asset allocation to drift for short term gains. As we all know, each investment carries some risk and that it is vital to choose wisely. While there are plenty of options available to design the portfolio, the key is to invest in a manner that allows you to potentially lower your investment risk and still maintain the chances of achieving your varied financial goals.

This is what you need to do to achieve investment success: