9 risk management strategies to navigate investment & risk as Sensex hits 75K
The Sensex has given a 1-year return of approximately 25%. in FY24 and currently is around 74,000, after touching lifetime highs of ~75,000.
There have been people who are being cautious in the current scenario who are advocating that market corrections could be imminent in view of the linear increase of the index.
Also, the current geopolitical situation is very volatile which can impact the market bull run. This brings us to this topic of investments and risk management.
Investments involve some level of risk, and how much any individual investor is willing to take on will depend on their risk tolerance.
Every individual has their own level of risk tolerance. However, these strategies will help them to navigate their way in their investment journey -
1. Re-evaluating portfolio diversification and asset allocation
It’s always better to diversify your investment portfolio across many sectors rather than be concentrated in one particular sector or an asset class, so that in case of any downturn, the investment portfolio does not suffer.
Therefore, for diversification, one can either invest individually or through Mutual Funds, ULIPs, NPS etc.
However, the investor should also be cognisant of the fact that within these investments also, there is diversity in the sense that investments are made in large-cap, mid-cap, small-cap and also international stocks.
So, make sure that the investments are not made in the same type of equity Funds- as it can skew your portfolio. Different asset classes should also be
