While the recession clouds overcast the financial skies, it may be disheartening for you to sit and watch how your investment portfolio has taken a nose dive. You held onto your patience, but even after nearly one year things haven’t changed much.
Looking at this grim picture one is often lead to think, whether its time to change your investment decisions and whether your investments have been right or not. But before you take a leap forward with the idea of reorganizing your investment portfolio, here’s a little bit of thinking that you need to do.
The long term perspective
As long as the markets were doing well, people were seen making frenzied investments in mutual funds and SIPs. But with the crashing markets, the positive returns from most of these schemes disappeared, and the current scenario is that most of these promising schemes are showing negative returns.
Still, most financial experts would advise you to remain patient and to hold on to your investments. Apparently, the sad market situation will not remain the same forever and we’re sure to see a bounce back over the next two to six years, and that’s the time you should pull out your investments by when you might be able to earn some reasonable returns on them.
Shares and stocks
As an individual investor, it’s always safe to play along the long term strategies, unless you earn your living through trading in the stock market. The markets are right now around the lows, and your portfolio may have shrunk by more than 50 percent.
And now is the time when you need to think more proactively, because rash decisions can just make you lose whatever little is left of your investments. The best way to go is to forget about your investments in the stock market for at least a year, or till whatever time the markets continue to remain turbulent.
Benefits of Investments in Insurance
Most insurance policies are risk free, except for the unit link insurance policies which are completely dependent on what’s going on in the market. Most investments in the insurance business are for longer duration, and it will be better if you continue with the policy till the term end.