Volatility in investments and in the market, is inevitable. But there are ways one can manage this volatility. Following are few quick tips which will help you to handle the volatility in market:

Tips To overcome volatility:

1) Always buy Liquid Cash Fund whenever you have some cash surplus. Try to make it before cut off time i.e. before 2 pm(before 2 pm purchase you will get previous days NAV in LCP and Overnight Fund).

2) Built your Emergency or Investment Build up corpus in Liquid fund category. Choose fund depending on your savings and investment horizon, from Money Market Fund Or Low Duration Fund.

These funds are sensitive to interest rate movement, if interest rate goes down MMF, Low Duration Fund provide better return than Liquid Cash Plan/Overnight Fund otherwise choose between Liquid Cash Plan Or Overnight Fund only.

3) In case of Emergency use Instant(#Insta) Redemption or next day RTGS Fund Transfer IN (#Insta redemption amount is Rs. 50000(max) daily or 90% of Fund Value)

4) For those who wants to switch, they can use Daily-STP to Equity/ Equity oriented /Sector specific call when there is sharp down fall in BSE-30/N50/NN50.(depending upon your choice, Value call, Growth Call or some other sector call)

5) Rebalance when stock/equity markets are in bull phase. Be practical rather than emotional. Also try to use both technical and fundamental analysis, if possible.

6) Re-adjust = Reverse Sweep/Switch to Liquid Cash from Equity or Stop Daily-STP(whenever you feel necessary).

How practically possible???

Manually-if you are close to AMC offices or extremely difficult nowadays, otherwise use AMC Website, In company Mobile Application(please download from Google play/Apple i store) or KFintechKart App or e-Cams
OR
use Third party software
B-StaR, MFU etc etc.(many others are available). Finally Upgrade, Re-adjust and Evolve.

Keep your patience, control your anger and be practical
Otherwise, use Asset Allocator(Asset Allocation Model)
Become a constant Winner

For Taxation, Taxability take help from a fee based Tax Consultant

NOTE: While writing the article we have not considered the “Default Risk”