Given the volatility of the share market, investors are often in flux on the right avenues to invest. In August 2018, the Bombay Stock Exchange Sensex corrected more than 4200 points from its 52-week high. This disruption in the share market caused many investors to become uneasy. This is why financial advisers recommend investors to look into other products that can mitigate their risk without having to endure stock market volatility.

If you have a long-term view towards investments, investing in equities with a reputed broker such as Kotak Securities could be your best choice. Additionally, if you are looking for more such profitable avenues to tide over market fluctuations, here are some options you can consider.

Monthly Income Funds

This is an attractive option for investors looking at regular income. Monthly income funds invest 16% to 30% of your total investment into equities and the remaining in debt securities. If you are considering investing for the short term, you may want to adopt more stable investment products such as aggressive hybrid equity funds and monthly income funds or savings funds.

National Savings Certificate

Traditional investors with low-risk appetite have received consistent returns over the years by investing in National Savings Certificate. If you want to diversify your investment portfolio into areas beyond fixed deposits, national savings certificates can be a suitable option. Additionally, the money invested in this investment is eligible for tax benefit up to Rs. 1.5 lakh under Section 80 C of the Income Tax Act. Moreover, the interest income from the National Savings Certificate scheme is also exempt under Section 80 C.

Fixed Income Bonds

You can earn up to 10% returns in a year with low risk by investing in various fixed income bonds such as corporate bonds and Non-convertible debentures (NCDs).

Balanced Funds

If you have an investment horizon of 3 to 5 years, ideally, you may want to invest in a mix of debt and equity avenues that can help you to build wealth. Here, it is a good idea to ignore short-term market volatility, especially if you are looking to invest for mid-term, and focus on the right combination of fixed income and equities in your portfolio.

Tax Saving Investments

Financial planners highly recommend investments such as Public Provident Fund (PPF), given the tax exemptions and lucrative returns. PPF is an excellent long-term debt investment that you may want to consider in your portfolio. As an asset allocation strategy, you can combine PPF investments with tax saving mutual fund investments known as ELSS, and claim tax exemptions up to Rs. 1.5 lakh under Section 80 C of the Income Tax Act.

Alternatively, if you are looking to manage your investments in a volatile market without the stress and pressure that comes along with it, look into a professionally managed account or an all in one fund for long-term financial goals. These kinds of funds provide a diverse range of services but come with separate costs. However, based on the option you select you can receive professional asset allocation, sound investment advice and continuing tax management.

Conclusion

It is wise to have an investment plan and stick to it, especially when markets are choppy. Instead of panicking due to market turbulence, you can focus on building a sound investing strategy with the help of a financial advisor. This plan can be instrumental in writing market fluctuations and helping you accomplish your financial objectives.