Correction in stock markets provides better opportunity to invest. Since many years I had been highlighting the same whenever markets fall be it at the time of Brexit in 2016, or in 2013 rupee depreciation etc.

There is always justification for rise and fall in the markets. In the short run it is purely sentiments which run the market. in the long run it is earnings which matter.

Our memory is very short. In your investing journey, many of you faced similar situations but my not remember now because markets have always recovered.

And for those who started investing since a year or two need to keep noted that the ups and downs is a feature of the market. One should not give due importance to it. It is good that you are seeing it early in your investing journey, where many market participants are not seen the current volatility in the last 1-2 years.

In Jan’18 subjected mail Practical Insights I mentioned not to chase stocks or investments at any price. And there will be next bus available to board.

Ongoing correction in markets bringing stock prices to reasonable valuations. And one can use the current time to board the bus cautiously in phased manner over the next 6-8 months adhering to one’s asset allocation.

Keep aside all the news flow and focus on simple investment strategy, which is buying low and selling high. The recipe for successful investing is buying low.And one can buy low when markets are in fear.

Debt as an asset class has become very attractive because of rising interest rates. Debt as an asset class witnessed high volatility in the last one year due to rise in interest rates. But with a horizon of 3 year plus it will get offset and give better post tax returns. Those of you investing since last 3- 5 years or so have seen the same.

For those who are in nil tax bracket, corporate FD’s like HDFC, Mahindra,etc. can be considered. Short and medium term debt funds can be considered for people in 20% and 30% tax bracket. Sr. Citizens with nil tax liability can also consider Post Office Sr. Citizen scheme.

Investment success comes from following the emotionally difficult path. Do not carried away by market sentiments-Parag Parikh