Be wary of letting FOMO drive market investment decisions
Define your financial goals clearly, set out an asset allocation plan in line with the same and invest accordingly
Consider rebalancing the portfolio periodically to maintain the targeted asset allocation
The current market rally has taken many by surprise. Recovering post-covid-crash losses, the broad equity market indicator, S&P BSE Sensex, has delivered a huge return of 72% since the bottom it touched on 23 March 2020. Some of the investors, especially those who pulled out of equity investments during the market crash and those who remained underweight in equities thinking the rally wouldn’t last long, are being driven into investments as a result of the fear of missing out (FOMO) syndrome.