Index Funds - The Best Bet |
Sep, 2001 |
After the unprecedented attack on
the US, what are your investment options
September 11th 2001 will be remembered by the entire world as a sad day for global capitalism. The twin towers at the heart of Manhattan which epitomised the power of the US economy and the ideals of free enterprise was reduced to rubble in no time. Not surprisingly, markets across the world from Germany to Japan have crashed. Indian stock markets today have been no exception with both the Sensex and the Nifty plunging to record lows.
Time to rethink your investment strategy :
More than being overawed by the magnitude of this disaster, as a rational investor, you need to seriously rethink your investment strategy. Let us look at the positive side of the market fall today. The sensex after testing a record low of 2965 has recovered smartly. What this effectively means is that if a disaster of this magnitude could not hold the sensex below the 2965 levels, nothing else could. In other words, the market downside from these levels is extremely limited.
Index Funds - The Best Bet :
Individual equities are too volatile currently to bet your money, unless you are a pro at timing the market. Debt markets typically react negatively to macroeconomic shocks and bond prices are likely to crash. The only thing one can safely bet on is that the index as a basket of stocks cannot retract much further from this point. The answer therefore is to aggressively buy index funds. With downside in the index limited from this point and the worst being factored in, the upside potential is phenomenal.
What are the index funds available to invest :
Strike while the iron is hot :
Intelligent investing is all about striking while the iron is hot. Meaning investing in the right asset at the right time. Today index funds are really hot. We invite you to participate in this untapped growth opportunity and the reap the benefits of the index upside from here. Investing in index funds is very simple. With Karvy's expansive network of over 90 branches, you are never too far from a Karvy Investment Center. You can get all forms for investing as well as personalized investment advise at our investment centers. Our team of personal finance executives will be only too pleased to be help you. Please call us at any of our centers for further support in this regard. For a detailed list of the Karvy Network click on the link below :
http://www.karvy.com/group/net.htm
Happy investing and have a profitable time ahead.
T S Harihar
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