How to Get Rich in a Falling Market: Stock markets have shown a dramatic V-shaped recovery after collapsing in early morning trading to even hit the bottom circuit. A lot of people have lost money, but here we show how to make money in a declining market. Yes, if the strategy is right and you don’t venture out, you can make a lot of money. Stock market experts reveal lucrative opportunities for where to invest. They believe that it is better to invest in mutual funds or SIP mutual funds than to invest in stocks directly.
In developing this investment strategy, experts said that the way the market has plunged indicates that an index should perform better and therefore it is better to invest in index funds than to buy a particular security. .
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Importantly, they maintained that their suggestion is that the long term horizon means more than 7 years and not less than five years. So if you have a get rich strategy, you need to weigh the options and take action based on it.
Experts say investors should put their money into large-cap mutual funds under the current market scenario. Rohit Singre, Senior Technical Research Analyst at LKP Securities, said: âThe stock market is showing signs of recovery after the channel has gone down, but it is better to avoid equity-specific trades and go for mutual funds, especially large cap mutual funds with a long-term perspective. ”
Singre said investors with a long-term perspective can opt for blue-chip large-cap stocks, but are in a hurry to prefer large-cap mutual funds over large-cap stocks.
On why large-cap mutual funds are better suited to investors in the current market scenario, Jitendra Solanki, SEBI-registered tax and investment expert, said, âIn such a volatile market, mutual funds Medium or small cap investment involves high risk proposition and for equity investors it is best to go for large cap mutual funds by investing a lump sum while the stock market is going down. strategy will help an investor to obtain a greater number of net asset values ââand once the market bounces back to its original position, they will be able to derive maximum returns from their investments. ”
However, he said those who don’t have a lump sum to invest can opt for SIP mutual funds for big long-term gains.
Asked about some large cap mutual funds that an investor can invest in the current scenario, Jitendra Solanki said that an investor can invest in index funds. He listed UTI Nifty Index Fund, HDFC Index Sensex Fund. He also advised mutual fund investors to opt for active large cap funds where Active Blue Chip, Mirae Asset Large Cap, ICICI Prudential Blue Chip may be a good investment option.