You can still make money in this crisis period.

The current global financial crisis has become a part of our lives. Most of the people around the world are reacting fearfully to the situation as the role model of the world economy; the US economy is facing the main problem resulting in global downsizing programme, inflation rates going high almost touching the sky. This as a whole is affecting other countries of the world some way or the other. People have stopped thinking about the improvement in the present situation as they are finding no ways to escape. The most frustrated are those people who had invested huge money in the equity market and now the value of their portfolio have become half or less than half. Now taking care of this, think of a situation where an investment professional from any Bank or any Insurance company comes to you to show any investment plan. What will be your reaction? I think you will not even give any appointment to him as every investment plan will seem to be of no use to you. But have you ever thought that 1 year earlier you were jumping thinking that you would become a millionaire. I think if you handle this situation smartly you can still make profit. The only thing which is in your purview is Positive mentality and in this situation only positive moves can pull you back from the financial quick sand.

From my experience in investment banking I can only say that this is the best time to invest. This is just like a chance God has given us to accumulate as much as we can. Have you ever thought that this situation will arrive and take away your smile? This is because no one can accurately predict the future. Similarly after 3 months if you find out that the market is recovering and within next 8-9 months it has again performed tremendously then the pain will be much higher. Smart people will always try to en cash upon this situation. Besides its better to go for long term investment plan. People often do the mistake by playing on a short-term basis and setting short term goals. But in many matters time is a big factor. Warren Buffet has invested time to become what he is today

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I have seen people investing in open ended mutual funds as they don’t think about the future. I think those people are the foulest though they think themselves very smart. This has resulted in a situation where only 20-30% Mutual funds actually mature giving full appreciation. It is suggestible that in this situation one should go for Unit Linked Insurance Plans as there will be capital protection as well as life protection. Besides in most ULIPs one has the flexibility to switch fund. So in this situation if someone keeps 30 % of his/her funds in equity portfolio and 70% in the debt instruments then he/she can be in a no profit no gain keeping a large portion of his/her investment safe just like a traditional deposit fund. So when the market will recover one can easily change the portfolio in a vice versa manner. If someone is a pure equity market player and invests mainly in pure equities through online trading accounts, it is suggestible to buy good stocks and play with them in delivery. Don’t go for derivatives or intra-day in this situation. It might had happened to you that you wanted top buy a stock but the price was too high for you to purchase . But now buying your dream shares has become very easy. Earlier a share which used to cost say around $100 has come down to around $30 -40. So think of the situation where you buy 1000 those shares and one fine morning you hear that the market is expected to recover and go back to its previous situation .Thus the time has come to stop crying & blaming others and act smartly to fulfill your dream which can be best realized in the present situation