Missed a Rallying Stock? Now What? While investors and trade | Credclub

Missed a Rallying Stock? Now What?

While investors and traders alike might experience major FOMO at the prospect of missing out on a rallying stock, they shouldn’t despair should they miss out.

Fools rush in - Rather than rushing in enticed by the potential gains still likely, investors should pace themselves. Stick with chosen asset allocation and use a systematic approach to rebuild presence in the asset class under consideration.

Consider valuations – While it might have been easier to pick stocks while the market, in general, was seeing an upturn, it is now more prudent to have stock purchases be governed by market valuations. Professional opinions on what stocks to invest in are recommended.

Dynamic asset allocation funds – Making use of valuation metrics, these funds allow investors to get equity exposure and alter funds allocated to equities based on market conditions. Investors here are saved from having to make decisions pertaining to how to invest and when to do so.

Systematic investment plans – These are a good idea however if they have just been started, investing in a lump-sum amount amounting to 3 to 4 SIPs initially and then adding on more each month is ideal. Provided these funds aren’t touched for 3 to 5 years they can rake in generous returns.

Investors should be wary of closed-ended funds and not get complacent with them as they are liable to have enhanced risks in comparison to open-ended funds.