I generally read http://www.valueresearchonline.com regularly to educate myself about Indian Stock Markets and especially Mutual Fund happenings. Read this story "Make Informed Decision". Nice thing to read about. In short what auther is saying that you need to be informed about whatever you are doing in the Stock Market specially as it moves faster than you think!. My strategy for current situation after seeing new Lows for Sensex today is :
- Stop reading http://www.moneycontrol.com : Yes please do that you will find tremendous simplicity in your life and also stress will be less :). Most of the stories are crap there and the opinions change every minute!
- Create a Networth Statement NOW : Yes do that today itself. In most cases you would be having 2-3 savings account and 2-3 credit cards, 1-2 loans, 10+ Mutual Funds and probably 20+ stocks !. To create a net worth statement and consolidate all this information will not take you more than 1-2 hours.
- Stop the SIP in Mutual Fund NOW : This needs to be done asap if not done already. I am not against SIP and also believes in the fact that the market needs not to be timed at all. But when fact is seen on weekly/monthly basis that with more negative news coming from global markets. Our Indian Stock Market is also in a downturn and Mutual Funds are taking the most beating here. So it is wise to stop the SIP now and start investing in the market little later when markets are seen stabalized(after some months of no -ve news or some months of +ve news!). If you are adventours it is worth buying Index Fund as it will go up sharply whenever market moves upword.
- Make some extra payment towards your loan : If you have not done this before. Start putting little more towards your home loan or car/bike loan now. This will help a lot in long term. There are lot of tools available on Internet to assess the impact of extra regular payments towards your loan.
- Do not take Personal Loan if you can avoid: This is not the time to take personal loans. Live life in simplicity and defer your decisions to buy something with personal loan if you can.