Lok Sabha Elections 2024: Diversify portfolios to mitigate risk, focus on defensives to counter volatility-Experts
Also Read- Lok Sabha Elections 2024: Defence, power, industrials among sectors to bet on ahead of election resultAnshuman Arzare MD CEO of Yes Securities said that before election results, investors should adopt a strategy of diversifying their portfolios across various sectors to mitigate risk. Focusing on defensive stocks, such as those in the FMCG (Fast moving Consumer Goods), healthcare, and utilities sectors, can provide stability and reduce volatility.Additionally, maintaining a portion of the portfolio in cash or liquid assets can enable investors to capitalize on market corrections, with buying during dips being a potentially fruitful strategy, suggests Arzare.After the election results, investors need to assess the new government's policies and their potential impact on different sectors as per Arzare.
Based on the election outcome and the government's ability to implement its strategies, investments should be shifted to sectors that are likely to benefit from these policies, such as infrastructure or technology, which might have been highlighted in pre-election discussions.Also Read- Lok Sabha Elections 2024 trading strategy: RIL, Zomato, HDFC Bank, NTPC and more - CLSA lists 54 'Modi stocks' to buyHowever as most experts highlights, Arzare also says that it is crucial to adhere to long-term investment strategies and avoid making impulsive decisions based on short-term market fluctuations.Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions Milestone Alert!
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