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Investment Ideas when Equity Market is Down

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The share market constantly undergoes periods of sharp upswings and downswings. Investors remain wary of such trends and deploy necessary strategies in order to avoid a loss during the market crash.

Changes in the stock market may have implications on your investments. During such times, you may consider alternative investments.

Following are four investment ideas to keep in mind when the share market experiences a downfall.

  1. Invest in real estate

An attractive avenue for investment is the real estate sector. When the equity markets are down, you may consider investing in Real Estate Investment Trusts (REITs). The good news is that all kinds of investors, even those with smaller budgets, may make high yield returns from their investment. The REIT platform has been approved by Securities and Exchange Board of India (SEBI). Investors may invest in their money in real estate properties such as residences, office properties, shopping centers, hotels, and warehouse units. By investing in such REIT units, you may enjoy income dividend.

  1. Buy shares that are shunned by other investors

Shares of various companies are sometimes avoided by certain investors, as they are perceived to be out of favor. During times when the equity markets are down, such shares present investing opportunities. You may, therefore, consider investing in such shares and earn good returns once the market is up and performing.

  1. Own a business

An excellent idea to use your money when the market is bearish is by investing it in a business. Based on your choice and preferences, you may establish your business. Businesses often tend to produce a steady income, which grows over time.

Another approach is to invest a part of the money into a business of your own and use the rest elsewhere. If you do not wish to own a business of your own, you may consider equity crowdfunding. This means buying shares of another company, thereby owning a part of someone else’s company. If the company succeeds, you will be rewarded well.

  1. Invest in gold

Gold is a hot commodity in India. It is a liquid asset and is a strong competitor to stocks. Investment in gold helps diversify your portfolio as it has a very low correlation to other class assets. Besides, it plays a fundamental role in mitigating losses when the stock market is under stress. Gold is an investment worth considering as it maintains its value over a period of time. You may invest in this tangible asset through gold exchange-traded funds (ETFs), physical gold such as gold bars or gold coins, gold accounts, or by investing in gold mining stocks or futures and options.

You may, therefore, consider the aforementioned investment ideas at times when the market is under-performing. By doing so, you may continue to yield returns and build wealth.