Allocating Assets In The Election Year

Ways to invest with minimum risk amidst uncertainties from polls to global developments.

- M. Rajendran

Making an investment decision is indeed a challenge given the uncertainties that prevails due to the ever-changing trends for different asset classes. But, then again each year, one has to plan an investment, be it short, medium or long term.

According to Tanvi Kejriwal Goyal, MD, Wealth Aware, “An average employee’s one third of a day’s productive hours get wasted in financial worries. If we can create a robust road map to our future financial needs, then we would really start enjoying and living in the moment.”

She puts forth the three step formula to wealth management. First, set a sensible target. Second, build a strategy to reach that target. Third, execute it and then review once every year.

It is not so easy, especially in a year that will witness general election and possibly a fresh government by May. According to economists and market experts, one other uncertainty that is likely to continue for a few more months is, volatile market due to domestic and global developments.

“Short-term volatility, ensuing general elections and how the new government will approach the economy, all of these queries have a common underlying theme – uncertainty,” said Ashish Shanker, Head-Investment Advisory, Motilal Oswal Private Wealth Management.

So what should be the investment avenues that an individual investor should seriously consider in 2019?

“If you have invested based on your goals, remain invested and continue further investments like SIPs as per your plan. If you are not sure about your investment horizon, it would be best to stick with ultra-short-term debt funds for the time being. Fresh equity exposure would be better through SIPs rather than lump sum,” advised Mrin Agarwal, Financial Educator and Money Mentor, Finsafe.