RISK MITIGATION!!!

High market volatility often ends up in drastically affecting the stock performance, which results in a need for risk mitigation. In Life there is no " Control Z",the same with the stock Markets, during recession or Bear markets its always " Better safe than sorry". In these market conditions there is a need for horizontal risk mitigation where in a person's portfolio comprises of more scrips and the amount to be invested in each scrip will be spread over the number of scripts.

Apart from the number of scripts, its important that the defensive stocks - Pharma stocks and FMCG Stocks hold a major share of the portfolio in order to minimise risk and optimise returns during the recessionary periods. Many Pharma stocks and FMCG stocks have fared well in comparison to the other scripts during these periods. When most of the stocks hit new low, Few of the pharmaceutical and FMCG stocks reached new highs during recessionary and bear market conditions.

If one would like to keep away from stocks then its better to opt for any bonds, Gold ETF's, Fixed Deposits and government securities.