Investors must tilt portfolio towards quality amid market volatility

Novice investors must understand that volatility is an inherent part of equity markets and learn to navigate through such phases

Abhishek Singh, 43, a Ghaziabad-based businessman, began investing in equities two years ago, expecting annual returns of 18-20 per cent. However, the January 6, 2025, fall in the Sensex by 1,400 points and the frequent bouts of volatility over the past three months have shaken his confidence. 

 

Novice investors like Singh must understand that volatility is an inherent part of equity markets and learn to navigate through such phases.

 

What is driving volatility?

 

Elevated valuations, indices reaching lifetime highs, disappointing earnings growth, and persistent geopolitical tensions have contributed to the recent volatility. 

 

“The heightened volatility at the start of 2025,