Mastering the market maze: 3 untapped investment strategies for 2024

Forecasts for 2024 indicate a continued environment of uncertainty and market volatility due to factors such as geopolitical tensions, the potential for continued rate hikes by the Federal Reserve, and concerns about global economic expansion. It has been. Developing a comprehensive year-round strategy can be challenging, and personal advisors say the figurative “two halves” approach is a cautious approach in the first half, and the potential for recovery and growth in the second half. We will propose a market outlook characterized by ‘storytelling’.

A variety of investment strategies may be considered this year, and the suitability of each will largely depend on your personal financial goals, risk tolerance, and approach to investing. As an example, some individuals may choose to invest in value rather than solely focusing on growth and momentum. A prudent initial approach could include favoring stocks with strong fundamentals that are trading at a discount, especially in a potentially bearish market. We recommend identifying companies with strong financials and competitive advantages.

Using diversification to rebalance your investment portfolio is also an effective tool. Diversify your investments across different asset classes (stocks, bonds, real estate, etc.) and diversify within each asset class (considering different sectors and industries) to reduce risk and create more stable return patterns can do. Additionally, if you’re looking for some protection during economic turmoil, you may want to consider alternative investments such as commodities, gold, or assets designed to protect against inflation.

Once you have decided on the nature and scope of your investments, you may consider actively managing your investments rather than relying on friends or relatives to manage your finances. In the face of potential increased volatility, active management could prove beneficial in navigating the market and identifying opportunities.

Learn personal finance and manage your money better

A meeting with personal finance experts highlighted why not everyone can adopt a one-size-fits-all investment strategy. The mantra “to each his own” sums up the essence of investment strategy, especially in times when geopolitical, economic, and financial stability is rare due to unprecedented macroeconomic factors. .

Mr. Basavaraj Tonnagatti, SEBI Registered Investment Advisor and Founder, Bas Nivesh “The first step you should take is to make sure the basic elements of your personal finances are in place, such as term life insurance, health insurance, accident insurance, and an emergency fund. If you are, make it a priority to address these needs as soon as possible. Once you have sufficient security, take the next step and review your asset allocation strategy. The market is at an all-time high, Although this situation is likely to continue due to the impressive performance of the stock market, it is important to carefully review your asset allocation. If there is a significant deviation, readjust it to your defined asset allocation and extend the period. You can do this by seizing the opportunity to rationalize your stock portfolio when the market is at an all-time high. Make the most of a favorable situation.”

Most people succumb to market turmoil, resulting in continuous and extreme losses. Tonagatti goes on to say, “Try not to react to news and market noise in your investment decisions. Instead, stick to a consistent and durable investment strategy. Don’t indulge in over-predictions, try to stay in control. Focus on controlling the factors to the best of your ability. It is wise to prepare for the worst rather than relying on predictions.”

Invest, don’t speculate

Avoiding speculation is an important consideration for investors looking to protect their portfolios. Speculation poses significant risks and often results in significant financial losses. True investing involves a thorough investigation of a company, its financial health, and long-term growth potential. It centers around acquiring assets with the expectation that they will increase in value over time, such as through dividends, interest, or capital appreciation.

Speculation, on the other hand, is often influenced by hype, short-term trends, and emotions such as fear and greed. This often involves attempting to realize quick profits by buying and selling assets based on predictions of future price movements, with little regard for intrinsic value. This year, investors need to distinguish between speculation and investment and make informed decisions about when, where and how to allocate their funds for more sustainable returns over the long term.

Gaurav Goel, Founder & Director; Finocrat Technologies “As always, we must not overlook the important aspects of investing: ‘diversification’ and ‘risk management’,” he explained. If investors have a long-term view and believe in India’s growth story, they can have equity exposure and invest in companies that have the potential to become huge in the next 5-10 years. A final piece of advice for those looking for quick returns: do not risk your hard-earned money by participating in speculative investments. ”

Mr. Rishabh Palak, Chief Play Officer; NRP Capitals He added, “Don’t just be a spectator, be a part of the great Indian story. Be the 11th person playing instead of the 12th person. That means investing in yourself to optimize your income through business and work.” That means: Given the vast opportunities our country currently offers, be agile and proactive to see how you can increase your income. Wisely, it should be primarily deployed in the stock market. SIPs or MFs, depending on your asset allocation.”

Focus on market themes

Prioritizing themes that drive domestic growth is essential for successful investment. India’s ambitious infrastructure development projects such as Sagarmala and Bharatmala are expected to stimulate demand for capital goods and construction-related materials. Rapid urbanization and the establishment of smart cities will also further contribute to the increased need for infrastructure and construction. The government’s ‘Make in India’ initiative, aimed at strengthening domestic manufacturing, is poised to have a ripple effect across the capital goods sector.

Mr. Bilal Bhatt, Founder; money mantra “Investors must focus on what drives growth in the country. We expect themes such as infrastructure, capital goods, real estate, public sector units (PSUs) and financial services to perform well. Consider the companies that are making money from these areas. Apart from that, you should not rush to pick stocks just to take profits from the market. There may be a broad rally initially. However, stock selection will be key in the second half of the year. Look for undervalued companies with strong fundamentals in growth sectors.”

A significant number of investors tend to overlook the inherent risks associated with investing. Bhatt further adds, “Be mindful of potential risks such as rising interest rates, geopolitical tensions, and a slowdown in the global economy. Diversify your portfolio and prioritize risk-adjusted returns. Based on fundamentals. This approach focuses on buying stocks at a price lower than their intrinsic value. A balanced approach is essential, so your risk tolerance Combine elements of different strategies, such as value and growth, depending on your degree and investment goals.”

Adjusting your portfolio according to market movements increases your chances of achieving large profits in a short period of time. Highlighting this fact, Mr. Bhatt explains: “Be prepared to adapt your portfolio mix based on changing market conditions. Shift into sectors that are showing positive momentum and exit from sectors that are underperforming. That said, small-cap investing has high potential. Remember that although it brings benefits, it also comes with higher risks. Do a thorough analysis before investing in this area.”

Success requires thorough research and careful stock selection within each thematic focus. Avoid impulsive investment decisions. Instead, consult a financial advisor to devise a personalized investment strategy tailored to your risk tolerance and financial goals.