Financial experts are emphasizing the importance of maintaining adequate emergency reserves amid current market uncertainties. According to Mint Money reports, Gajendra Kothari from Etica Wealth recommends maintaining a minimum of 12 months of expenses in liquid funds, noting that six months may be too risky, particularly if only one spouse is earning. Dilshad Billimoria from Dilzer Consultants suggests that if both spouses are working, six months of emergency funds could be the minimum threshold, while Shyam Sekar from ithought PMS recommends holding 18-24 months of expenses for meaningful financial stability. The experts caution against confusing global anxiety with the need to hoard cash, emphasizing that emergency funds are meant for personal contingencies like job loss or medical emergencies, not geopolitical uncertainty.
Despite current market volatility, financial advisors are advocating for continued systematic investment discipline. As reported by Mint Money, Gajendra Kothari suggests maintaining 10-15% as dry powder in liquid funds to take advantage of short-term corrections in flat markets. Dilshad Billimoria recommends that if asset allocation is already aligned to risk profile, time horizon and goals, there is no need for changes, while Shyam Sekar advises reducing exposure to highly valued businesses and aligning portfolios more closely to sound valuation metrics. The experts note that while markets have remained largely flat over the past 18 months, they could stay at similar levels for another year, with Dhirendra Kumar from Value Research highlighting that data from Carson Group shows average market returns six months after major geopolitical events have been positive.
Financial experts are providing specific guidance on loan management during uncertain times. According to Mint Money reports, Gajendra Kothari recommends continuing to service existing loans as interest rates are not very high, while ensuring healthy income-to-loan ratios for new commitments. Dilshad Billimoria suggests managing loans based on debt-to-income ratio, with EMIs continuing as planned if within 30-35%, and considering prepayment or restructuring if higher. Shyam Sekar emphasizes keeping overall debt levels low and avoiding top-ups on home loans or new consumer debt. The experts prioritize closing high-cost debt such as credit card loans and recommend accelerated repayment of 10% annually alongside regular EMIs to significantly reduce loan tenure.
Financial advisors are emphasizing the importance of maintaining diversified portfolios and avoiding panic-driven decisions. As reported by Mint Money, Dhirendra Kumar warns that the real risk isn't oil or war, but investor panic, citing data from Carson Group showing that average market returns six months after major geopolitical events have been positive. Shyam Sekar recommends building portfolios around businesses that can pass on cost pressures to customers while maintaining balanced asset mix. The experts advise against panic-selling, stopping SIPs, or shifting to gold and fixed deposits amid negative news, emphasizing that equity portfolios will periodically turn negative but this volatility is the price of long-term wealth creation. Gajendra Kothari suggests that for recent equity investors, equities should be approached with a minimum investment horizon of five years and tempering expectations to returns of around 10-12% over the next three to four years.
