Managing investments in 2026 amid volatile markets and geopolitical uncertainty

Subscribe to enjoy similar stories. 2025 was all about FOMO investing. Crypto SIPs grew by 60%, while gold and silver assets under management surged from ₹57,000 crore to ₹2 trillion by the end of the year.

Retail participation in IPOs hit a record high, with subscriptions totalling nearly ₹42,000 crore—three times the amount invested in 2023 and almost on par with the ₹45,700 crore deployed by foreign portfolio investors in new equity issuances this year. The pressing question now is whether these investments will actually deliver returns over the long term. Investor behaviour, however, has not changed much over the years.

FOMO and the pursuit of quick returns—fuelled by greed and amplified by social media—continue to shape investment decisions. 2025 also delivered a sharp reality check, with markets initially correcting by 12–25%. While broader indices eventually recovered, investors in the most fancied mid- and small-cap stocks were left nursing losses, along with hard lessons on sector and style rotation.

Against a backdrop of persistent negative news—geopolitical tensions, tariff concerns and sustained foreign investor selling—it is important for investors to pause and reassess their portfolios. What role do these investments play? Are they aligned with financial goals, or can they be meaningfully linked to one? Which holdings form the core portfolio meant for long-term goals, and which are tactical allocations? An investor may have bought silver riding recent performance, but the key question remains whether silver is a long-term asset aligned to a goal or a tactical bet that needs close monitoring. FOMO often pushes investors towards unregulated investments such as cryptocurrencies, digital gold or unlisted