Five Investing Rules To Stay Ahead in Any Market Conditions
Rule#1. Divide your allocation into two parts, short term (less than three to five years) and long term (more than five years).
Rule#2. If your goals are short-term in nature, invest in debt-related instruments preferably the short term debt funds.
Rule#3. Do not overload your portfolio with Mid-cap, small cap and sectoral funds expecting better returns. They could fall faster than large-cap funds.
Rule#4. Don’t panic during a market downturn. It is neither the end of the world, nor does it mean that what comes down will remain down.
Rule#5. Make sure your portfolio is properly diversified across different asset classes. In this way, your investments will be protected against market uncertainties.