Stay invested, be hedged, prefer largecaps: Devina Mehra decodes stock market trading strategy amid high volatility
₹100 investment grew to just ₹230, barely outpacing fixed deposit returns. This contrasts sharply with the 1980s, when a ₹100 investment soared to ₹700.
Also Read: Lok Sabha Elections 2024: 4 investment strategies to follow ahead of election results next weekGiven this historical underperformance, Mehra believes there's still room for growth and despite the recent market surge post-COVID, she believes there is a potential for more upward movement.“This is the reason why I remain positive on the markets as even after the run up post Covid lows, we are not even close to the trend line, let alone above it.However, Mehra believes there may be volatility in the Indian share market for the short term. To mitigate this, she suggests remaining fully invested but buy insurance via hedges to manage potential downsides.
This strategy may incur costs, but is a prudent measure to avoid significant losses. She emphasized the importance of staying invested to capture market gains, noting that missing just one of the best days each year can drastically reduce overall returns.Also Read: ‘You must start an SIP…’ Radhika Gupta's advice on investing in mutual funds to Shark Tank India staff backstage“And while some volatility is possible, a sustained down move is not what we are looking at and hence we have not moved into cash because the other thing to remember is that while there is a risk to being invested in the market, there is also not being invested and missing out on an up move.
If you miss out, on the average, even ONE day a year (the best day for that year) you miss out on 90% of the market move. That is what data shows us," she wrote in the post.In short, when you are positive in the medium term but there can be some ups and
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