There are 2 things spoken widely in India the one being cricket and the other being stock markets. In fact the bull rally that India & china showed made millions of millionaires & promised many more. But rules are sane for all. Nothing comes easy especially money. In the recent market correction, stocks have melted more than 50 - 60% , leaving the investors lost & confused as to what should be the next step? Where is the market heading? Is it the right time to invest? Or is there more pain in the market? Should we exit our positions or should we average them?

Well there are no right & wrong strategies in the market. The strategy which gives you profit is the right strategy. However we can discuss the possible strategies in this turbulent times.

Markets have corrected Quite a bit & lot of stocks look attractive. If you are holding stocks stick to fundamentally strong & the ones having good earnings.

If you have already invested, I am sure that your portfolio will be bleeding. If the stocks selected are large caps or Company's with strong fundamentals then dont panic, hold on to it, you can even average it if markets go further low. India has strong fundamentals & accelerating domestic demand. So any stock which is undervalued will find investors & will bounce back. Trying to time the market is never a good idea .On the other hand if you are holding stocks based on Tips, information which promise to show spectacular returns but currently have no strong balance sheets then exit the stocks as these may take even years to come back to the level at which you bought .If you are not invested then there is a good news, stock market provides excellent opportunities at these prices.

Lets not forget that here we are talking of Investment from a 12 - 18 months time horizon and not short term. But again markets are volatile, global scenario's don't look much positive. Sub prime crisis, rupees appreciation, inflation, general elections, and derivative losses are Playing a spoil sport and can make the markets to test new lows or even test the patience of investors who are having a time frame. To play this market it is suggested to adopt a pyramid strategy. Where in you invest not more than 20 - 25% of your portfolio at each level and then keep investing at the break of every crucial technical point both at the upside or down.

Gold can also be a good option taking 12 - 18 months horizon.t. It you are a MF investor then it is recommended to go in for diversified Equity funds rather than sector funds. SIP is the ideal route to adopt as on date.

It is the normal tendency to feel excited to invest money when we find idle bank balance, go in for balance funds rather than equity funds. This will take care of the impulsiveness to invest and also beat the market volatility.

20 - 24% return is very good ideal return, and any thing more than that for a long period is not sustainable. India is a growth story believe in it and ride that bull with caution and care. Happy Investing. 

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