Market Volatility Shouldn't Deter You From Investing

Table of Content

1. Recent trends

2. How market volatility helps you

3. Making the right choice

Recent trends

Whether it was the announcement of the Reserve Bank of India's monetary policy review, or the results of by-elections in Uttar Pradesh and Rajasthan -- markets showed how they rule depending on the factors around. However, it wasn't as big a fluctuation as there could be considering the Assembly Elections that's due in Karnataka, or the build-up to the General Elections 2019. 

The Assembly Elections are like the pre-board examinations for the ruling party in order to show their mettle in the General Elections next year. This could perhaps trigger some fluctuations however, that shouldn't deter you from investments.

How market volatility helps you

Market volatility gives you the scope to review your portfolio. By reviewing your equity allocation for every year, and judging whether there is any gap between what you allotted and where it stands now, you could always either "pare down your equity exposure" in case the gap is too wide or if the exposure has come down, you can raise it to the original level.

Making the right choice

Short-term fluctuations are quite common in any market and it is then that you have to make the choice of what will suit your needs best and how. With the HDFC Life's holistic investment plans, you can choose what suits your needs best without having to suffer loss.

Systematic investment plan in the form of Unit Linked Insurance Plans -- in the wake of market volatility -- is the best bet given the customization and the variety of funds you get to choose from. HDFC Life's ULIP plans act as your insurance provider as well as let you invest in the choice of your equity. Further, in ULIPs, you can switch your funds as per how the market functions and still be covered the uncertainties of the life. For instance, if the market is dipping, you can switch to liquid/debt fund.

Thus, whether you are market-savvy or not, ULIPs not only give security to life but also help you grow your investment as per how the market functions.