By  Vaibhav Jain, Share.Market Research

In recent times, the Indian stock market has experienced significant volatility and fluctuations. While Nifty 50 is still near its all time highs, it is the broader market which is seeing corrections. Most of the correction may be considered healthy, given the magnificent rally we have seen in the mid and small cap space in the last few years. Owing to this, there has likely been a valuation stretch in these segments. Events like AMCs capping fresh inflows in these Mutual Funds schemes, stress tests mandated by the regulator, industry fluctuations are amongst some reasons that may have made markets volatile.

Navigating these volatile currents of the financial markets demands a steady hand and a keen eye for opportunity. As we stand on the precipice of few major macroeconomic events, including impending general elections, investors find themselves confronted with a landscape fraught with unpredictability and risk. Amidst this backdrop, investors are often faced with a dilemma: how can they effectively manage their portfolios in a rapidly changing environment, especially when time and expertise are in short supply? 

This question is also owing to a notable change in investor behaviour – surge in investor awareness, a departure from past trends. Investors are earnestly striving to enhance their financial literacy, and taking a more proactive role in wealth creation. Today, they are seeking clarity on portfolio allocation, stock selection criteria, and optimal investment levels, including understanding their exposure to various stocks or ETFs. They are increasingly looking for simplified investment solutions that can provide them with varied choices, based on in-depth research, that cater to their investment needs. 

So, what essential items should investors include in their portfolio checklist for a stress-free experience?

  • Data driven solutions: when solutions are designed around a data driven process which has been evaluated over multiple business cycles, it helps the investor navigate volatile times with clarity and confidence. One such solution in the market is WealthBaskets offered by Share.Market, a curated selection of stocks or ETFs designed to capitalize on specific investment themes, strategies, or sectors. Developed by in-house research analysts, with just a few clicks investors can align their portfolios with their investment goals and gain exposure to a diversified array of assets.    
  • Easy to use and accessible:  user-friendly investment products wherein investors can sign-up in minutes and start investing with as little as ₹1000—an investment product for everybody, whether a new or a seasoned investor.
  • No Lock-in: the portfolio should provide the flexibility of no lock-in period, allowing investors to make withdrawals at any time with ease.
  • Transparency and control: Complete portfolio visibility giving the investor the choice to modify stock allocations weightage as per their preferences.
  • Built in intelligence around entry and exit of stocks: A data driven solution should have entry and exit conditions predefined so that profit or loss booking can be done at the opportune time. WealthBaskets as a complete solution takes this proactive approach that not only keeps the portfolio aligned to market realities but also dynamic enough to keep optimising the risk return profile on a regular basis.

WealthBaskets, curated by Share.Market Research, brings a quantitative view on equity investing which analyses past ~15 years of back-tested data and presents 8 to 10 stocks in a basket depending on a theme, sector or a strategy. It places significant emphasis on its process. Recognizing the inherent volatility of markets and the perpetual uncertainty of the current environment, WealthBaskets acknowledges these as standard aspects and facilitates smooth navigation. Ultimately, this approach ensures investors acquire a portfolio of stocks informed by intelligence and sound strategy, all while enjoying the benefits of transparency, regular rebalancing, and cost-effectiveness.

This level of visibility empowers investors to make informed decisions and stay engaged with their investments, fostering a sense of control and confidence in their financial future. In conclusion, navigating the volatility of the current economic era requires a strategic and disciplined approach that reduces concerns associated with investments. Don’t let volatility and investment anxieties hold you back!

This article was originally published in Moneycontrol on 28-03-2024

Disclaimer

This article is for educational purposes and should not be considered as a recommendation.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. All investors are advised to conduct their own independent research into investment strategies before making an investment decision.

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