2024 was a roller coaster for Indian Stock Market, in the first half we have seen Indian Market surging like anything. Everything was surging be it Large Cap, Mid Cap or Small cap as and individual stocks also given stellar returns. But the second half was totally different, the market was flat and downtrend where we have seen the market was down by more than 10%.
So let's find out what should be the investment strategy for 2025. But before that we have to do certain things we have to do, like access our financial situations, have emergency fund as well as have insurance. This is because it will give you financial stability in times of uncertain times. If the market continues to go down you don't want to get money from your equity.
This downtrend is mainly because of the geo political tensions across the world, high valuations in some of the stocks as well as the GDP going down of India which is around 6.4%. So what we have to do is move our mid cap and small cap funds to Large Cap because in this uncertain times Large Cap gives the stability. Next is to have the 20% cash in hand so that if the market goes down then you can buy the dip. Now you might thing it's risky to keep cash what if the marlet goes up. Keeping cash is never risky. You can keep it in FD and then invest whenever the market goes down by like 20% or 25% from it All Time High.
Next is if your SIP is running don't stop it because investing now is the best time to invest if you are a long term investor. The market might be down but it gives a great opportunity to buy for the long term.
