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Amid India-Pakistan tensions, 6 ways to save your investment portfolio from market volatility
- Written by Angana Pal Chinya
Published: 12:40 PM, May 12, 2025
|Updated: 5:01 PM, May 12, 2025
With India-Pakistan tensions heating up after repeated ceasefire violations and drone incursions, Dalal Street is feeling the pressure. Volatility has surged, defence stocks have rallied, and investors are scrambling to protect their wealth. But if history is any indicator, these jitters might be short-lived.
Analysts believe such escalations often lead to sharp pullbacks followed by swift recoveries. The key? Avoid panic, stay strategic, and drone-proof your portfolio with these 6 time-tested moves.
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Keep dry powder: Cash is your shock absorber
Holding 10-15% of your portfolio in cash allows you to pounce on attractive opportunities when valuations drop. Liquidity helps you stay agile, especially during war-driven volatility.
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Follow the asset allocation rulebook
Diversify into gold, debt, or hybrid funds to reduce equity exposure risk. Gold has historically acted as a safe haven in times of uncertainty. Similarly, debt mutual funds can stabilise your portfolio when equity markets go into risk-off mode.
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Keep your SIPs running
Your SIPs benefit from rupee cost averaging. When NAVs fall, you accumulate more units. Cutting SIPs mid-way is like jumping ship in a storm, counterproductive.
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Don't put all your sectors in one basket
Spread risk across pharma, FMCG, IT, financials and energy. Sector rotation is real, don't let one headline take down your entire portfolio.
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Quality > quantity: Blue-chips might be a good investement now
Large-cap companies with low debt, consistent cash flow and proven leadership are better equipped to ride through crises.
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Stay defensive, but be ready to strike
FMCG, pharma and utility stocks offer safety during turbulence. But keep cash handy for high-beta opportunities in beaten-down midcaps.
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