Most people would tell you to invest in the market when it is down but showing potential to bounce back. They would also advise you it's safer to not make any new investment when the market is nearing an all-time high. As the Indian economy showed a “V-shaped” recovery after the pandemic slowed a little, the stocks have hit record highs again this year. The rally that started with blue-chip companies has now caught up mid-caps and small caps. The question now arises what should investors do?
Waiting for the market to come down to invest money is a negative approach and may not always bear fruits, say financial experts. Additionally, this may result in loss of opportunity. The best approach, say experts, is to find alternative investment options if you feel anxious about a market correction. Here is a list of options you may try.
Investing in this precious metal is always an option worth trying, given its relative consistency and demand. It is widely considered a tangible inflation hedge and a liquid asset. It is a long-term store of value. Investors can buy and hold physical gold in the form of bars and coins or invest indirectly through gold mining stocks or in digital gold.
In the long run, investing in artefacts can be rewarding. Often the price of an art shoots up over a period of time, as its rarity grows. But investors should keep in mind that maintaining an art could be difficult and expensive.
Most people invest in property as an easy way out to avoid the complexity of understanding the stock market, which also requires regular monitoring. This is, again, a long-term investment option and requires a large sum of money at once. But there can be regular benefits if you rent out the property.
4.Investing in business
If you have a good amount of disposable money which you do not want to invest in the market, you can use it to grow your own business. Businesses require regular investments, but they have the potential to give the highest returns of all other investment options.
While cryptocurrencies are highly volatile and speculative, they can be an alternative to traditional options. Digital coins have risen in popularity all over the world. However, it's crucial to know that they have no legal backing in India yet.