The markets are falling as the world is going to end. We are in an uncharted territory of medical pandemic. The economic activities across the world come to standstill. Govt and central banks across the world has announced fiscal and monetary measures.(rate cuts, financial assistance etc to its citizens,businesses etc.)

Need to hear the same from our central bank and govt. The recently announced measures will not be sufficient to tide over the current crisis.

Before recommending investing I always consider your overall exposure to various asset classes and make you invest accordingly.

For couple of you investment done in equity funds through SIP and STP for their long term goals like retirement and other important goals along with some allocation to debt for their short term requirements.

The long term advantage of SIP and STP is it helps to invest at low a valuation which is the key feature of it. And more importantly it happens in a disciplined manner. The goals are far away and the time is on your side. In hindsight these corrections look like great opportunities after 10-15 years.

And couple of you has high allocation to physical assets like real estate and others. And equity forms a very small percentage in overall assets. You have shown interest to add when markets are going higher. I clearly said this is not the time to over board as valuations are not in favour. Now the time has come to increase allocation to equities.

For some of you the purpose is to generate cash flows and earn tax efficient returns than traditional instruments. To such investors predominant allocation Is towards debt with some minor allocation to equities.

In order to protect value of money from inflation times like these are important to increase allocation, ignoring the market volatility.

For majority of you in the last couple of years the equity allocation is done through asset allocation funds. The biggest advantage is such funds automatically increase equity in current scenario. For example in the last two months such funds increased the equity component to more than 70-80%.

In hot markets people focus on returns. And in a falling market, focus shifts to risks. In history of markets and experience of those investing for over more than a decade can agree that the opposite works quite wonderfully. And important point to keep in mind is you will never have markets so cheap without a problem. In the last few days promoters and directors of reputed companies started buying their shares.

My sincere request is do not look markets and portfolio’s and get disturbed by its daily volatility.

I once again reiterate that follow asset allocation. After keeping aside 6-9 months of emergency fund and other important short term requirements one can look to taking advantage of current equity valuations to invest for long term.

Do let me know in case of any further information or queries.