Avoid excess exposure to risky assets in times of high market volatility

Build emergency corpus, buy adequate life and health insurance, and don't take on too much debt

The global economy is currently facing uncertain times, amid bank collapses and job cuts at major US-headquartered corporations. India’s chief economic advisor, V Anantha Nageswaran, recently emphasised the need for corporations, households and investors to maintain a margin of safety in these volatile times.

While India’s domestic economy is in reasonably good shape, its financial market can’t remain immune to global volatility. Amid the prevailing risk-off sentiment, global capital is likely to move away from equities and into safe-haven assets such as treasuries and gold. Investors need to be cautious with their personal finances and investments in such times.

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