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Indian Market Volatilities: How Should You Invest?

  • Highlights

  • Several global changes have led to a volatile market

  • Avoid risk and focus on assured returns

  • Steer clear from market fluctuations

  • Select a mix of FDs for your portfolio

Political changes, financial announcements, international prices of essential goods, and even policy regulations can bring about a change in the market. Volatility is an on-going aspect of the market. Lows and highs are features of the market irrespective of whether you are looking at it from the macro level or micro perspective. Keeping this aspect of the market in mind, here is a lowdown on market trends and how you can tackle volatile situations through the right investments.

DID You Know? Bajaj Finance Fixed Deposit offers assured returns of up to 8.35%*, along with multi-deposit, loan against FD, and auto-renewal facilities. Invest Online

Current scenario: What are market trends?

The Indian stock market was once regarded as a strong market compared to its other Asian contenders. From 2015 onwards, the Indian market has experienced many significant blows. These have led to an underperforming market. Here are the primary reasons why the Indian market has become volatile at present.

- The Dow Jones market fall: The US market is one of the most vital stock markets of the world. This market impacts other global markets. So when the US market crashed, the ripple effect was felt in our part of the world too.

- Increasing crude oil prices: To fulfill its energy requirement, India depends heavily on oil imports. So, the increase in Brent per barrel crude oil prices has impacted it negatively.

- Election and GDP woes: The 2019 Lok Sabha election is overruling every other financial trend at the moment. The uncertainty it brings has now taken centre stage, making the market extremely volatile. Also, the government’s recent announcement of a 3.3% of GDP fiscal deficit target for 2018-19 has been a cause of change. Experts believe that this GDP figure, even though better compared to the last financial year, can bring about negative implications in the market.

- The lowering value of rupee: At present, the rupee has attained a declining status making its position lower than the dollar by a strong margin. This deteriorating value makes the Indian market an unstable ground for investment as far as foreign investors are concerned.

Studying all these trends and after comparing the present scenario with the past, experts are of the opinion that the market will continue to experience a slump for the next few months. So, there is still some time until the market settles down.

Need for safe investment avenues

Keeping these trends in mind, you need to prepare for market instability with a sound financial plan. While it is true that for every low there will be a corresponding high and vice versa, the market at present is too volatile to be summed up as a ‘low phase’. So, you must utilise this time to choose investment options that keep your money safe and away from market fluctuations. Choosing low-risk, assured-return investment options at present will help you grow your wealth without being affected by the winds of change. You can select commodities, real estate, and gold as investment avenues to yield higher returns over time. Simultaneously, you can select risk-free investments that give you a regular income and strengthen your financial power even in times of turmoil.

How to safeguard your investment portfolio

This market and its downturns are giving you the ground to practice downside investing. Even though adding a mix of short-term and long-term investment options are known to balance your overall financial risk, now is the time to lower your risk exposure. So, you can plan your investments wisely by choosing a fair mix of cumulative and non-cumulative FDs for your portfolio. The return or maturity value for these investments is fixed, so you can count on your earnings, irrespective of market volatility.

In case of cumulative fixed deposits, you can only access the interest earned on your investment at maturity. On the other hand, when you choose non-cumulative FDs you can access the interest periodically, at a frequency of your choice. To make the most of this portfolio choose high-interest FDs from tenors ranging from 12 to 60 months from Bajaj Finance.

These FDs are lucrative in terms of the benefits they bring along and the interest rate they offer on your investment. Awarded ICRA’s MAAA (stable) rating and CRISIL’s FAAA/Stable rating you can completely rely on Bajaj Finance as you are assured of receiving up to 8.35% interest on your investment. Also, you can start investing with a mere sum of Rs.25,000 by choosing from the cumulative or non-cumulative variant to yield high-interest returns amidst this severely volatile market.

Now that you know how easily you can stay financially safe amidst market volatilities, use the FD calculator to calculate your returns. This will also help you decide whether a cumulative FD or a non-cumulative FD will help you achieve your goals, be it your child’s education, buying an asset like a car, or planning for retirement. With an easy online application, you can start your journey towards guaranteed returns in no time! Apply here to start your risk-free investment journey today.

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