Investing in tough times

Over the world Equity markets have witnessed a crash, and equities have failed almost every retail investor in different magnitudes.

With voices of global recession and slowdown doing the rounds in industry circles, and financial planners advising investors to `stay away` from stocks at least for the next one year, fear and caution are the two bed partners an investor sleeps with now a days.

So what does one do in such turbulent times? Stay away from the stock market, just because the `experts` and commentatators in the media say so, and look at other investment avenues like bonds, real-estate, gold and mutual funds?

Or, can he start taking baby steps towards the stock market, rather than be sorry for having missed out on the opportunity later?

‘Planning’, they say is the first and basic step for success in every aspect of life, be it career or family matters, and so is it for investment decisions as well. Investing without planning is like a ship deserted without a captain in the troubled waters. There are a few things to be kept in mind before making any kind of investment especially during tough times, like the one we are facing at present

Goal Setting

Goal Setting is the first step towards any kind of investment, be it an individual’s maiden investment or investing after having tasted some of the salt and sweet that life offers. Goals can be of three types:-

Short term - for immediate monetary requirements.