Equity trading has been a volatile activity this year. The benchmark indices plunged to near four year low as Covid-19 wreaked havoc. However, true to the spirit of long term share market investing, the indices surged impressively thereafter and hit eight month highs in October as the festive season approached. Festive Season brings a lot of cheer in our lives. In India, the last three months of the year bring in unparalleled joy and happiness all over the country as festivals like Dushhera, Diwali and Christmas make a beeline. 

With hardships witnessed this year, the festive season joys are going to be a welcome change for all of. Even for investors, as Diwali, the festival of lights approaches, it is a perfect time to reminisce on the biggest takeaways from equity market trading this year and how they can help in framing successful wealth creation strategies that work. 

Light at the end of tunnel: Normally, when things are not going well, the human minds tend to ignore the larger picture and focus on the very near term outlook. This often backfires when it comes to share market investing. That is the reason why most stock advisory companies tend to suggest retail market participants to rather keep their long term investing targets in mind. As Diwali comes, it is time to remember that there is a light at the end of a tunnel and testing markets tend to reward the patient investors handsomely for their composure.  

New beginning: A large number of people think of festive season to buy new possessions. Also keep in mind all such possessions are in a one way or the other linked to your financial wellness. Why not start a new Systematic Investment Plan (SIP) this festive season for you and your family. Or better still, why not open it up for your kids as a festive gift 

Long term equity market trend: One of the biggest factors influencing the equity market trading this year is the belief and understanding of market participants that the economic recovery will be swift and generous next year. The unlocking process continues in India and businesses are trying to come back to normalcy. If this continues, then the earnings of listed companies are likely to turn in upbeat performances in coming quarters, benefitting the broad indices. 

India’s pandemic fight: India’s Covid-19 pandemic fight turned in a decisive corner in second half of October as fresh daily caseload fell sharply from its highs of around 90000+. India has achieved a significant milestone in its fight against COVID. The active caseload has fallen below 6 lakh for the first time in nearly three months by the end of October 2020. The active cases comprise just 7.35% of the total positive cases of the country standing at around 60 lakhs. This has strengthened its trend of steady decline and will continue to offer good support to the economy and equity markets in India. 

Prudent Financial Planning: The Covid-19 pandemic and the heavy collapse in stock markets in first half of the year has highlighted the importance of prudent financial planning for everyone. This is where a good stock or investment advisory service comes into picture. A properly framed financial plan with sufficient focus on liquidity needs as well as long term wealth creation goals is the need of the hour for everyone now.

Outlook:

Financial wellness matters and matters a lot. While equity market trading offers a plenty of options to invest in a wise manner and gain over a period of time, peace of mind is equally important. This essentially means favouring solid and trustworthy businesses to invest into and avoiding taking unnecessary risks. Financial fitness is a mantra that needs to be practised diligently to cope up with uncertainties and achieving your long term goals.