How To Handle Market Volatility Like a Pro
ft. Sayali's Mom, Sujata Sheth
Hey!
Sayali’s mom & I have a very special relationship! For starters, she’s great with finance and she’s an amazing travel buddy: two things y’all know I LOVE! So, it was about time she featured in our newsletter, no? Anyway, if you’re here, you already know what this newsletter is about. So go ahead and tell me:
Here’s what’s in store for you in this edition:
Monthly Market Review - March 2025
Investing In Volatile Markets ft. Sayali’s Mom
Binge Of The Month
Unmissable Info Within 3.5 Mins
‘Sup with the market
March 2025 has been a volatile month for both global and Indian stock markets. While the world faces unpredictable trade policies, India has shown some resilience, though uncertainty remains. 🌍📉
Global markets took a hit in March. The S&P 500 fell 5.7%, its worst monthly performance since December 2022, mainly due to concerns over President Trump's new tariffs affecting global trade. These trade restrictions, along with global growth worries, spooked investors and triggered widespread sell-offs. 😬📉
Now, here’s the interesting part: while global markets were losing steam, India’s markets stayed strong, with some positive movement. There was strong support from institutional investors, with FPIs returning as net buyers. However, volatility remained high due to global trade uncertainty and potential RBI interest rate changes later in the year. 📊📈
Personally, I’m excited to see how April unfolds for Indian markets. Experts are bullish on India’s long-term prospects but suggest caution in the short term due to global headwinds. 🤔💡
Making the Most of Market Volatility
In the ever-changing world of personal finance, it’s always insightful to hear from those who’ve navigated the ups and downs with experience and grace. This month, the guest piece is straight out of Sayali’s Mom, Sujata Sheth’s table…and heart! Sujata Aunty, as I’ve always called her, is an ICWA and CS by profession with over thirty three years of experience in financial management (probably the longest stint in a manufacturing company). She's currently the CFO of a paper manufacturing company, managing personal and company investments.
With an impeccable eye for investment, she’s been both a guiding hand and a living testament to financial wisdom for handling finances for her company (and her family, of course). Here, she shares her thoughts on market volatility, investing, and what new investors need to know. So, I thought I’d share all the questions I asked her with you:
FinCocktail: Aunty, you’ve been investing for years. How do you approach market volatility?
Sujata Aunty: I’ve been investing for so long that I no longer panic when the markets get volatile. I look at it as an opportunity, especially when it comes to investing through SIPs (Systematic Investment Plans). It’s the nature of the market to be volatile, and that’s why it’s often considered ‘risky’ by the older generation, who prefer Fixed Deposits, Recurring Deposits, and investing in Gold. But I believe that volatility can be looked at as a sale – when the market dips, it's just like getting stocks at discounted prices.
FinCocktail: So, what do you do with your extra savings?
Sujata Aunty: At this point, I’m investing my extra savings in Mutual Funds – specifically in Flexicap, Midcap, and Small Cap funds. Gold and silver are already overheated in my view, so I’m staying away from them for now. If you’re someone who doesn’t understand the market very well, I recommend investing in Index Funds via SIPs every month. It's a safe way to get started without making impulsive decisions.
FinCocktail: Let's talk about market trends. How did the past year shape your investment approach, and what do you expect moving forward?
Sujata Aunty: As we all know, last year was extremely volatile, with returns that didn’t even beat the bank deposits. Gold increased by +31.37%, Silver by +35.56%, Nifty by +5.29%, and Sensex by +4.96% in FY 24-25. The global scenario, with wars and political uncertainty, contributed to market volatility. I believe that this kind of volatility will continue for the next 3 to 6 months. However, once things clear up, I believe the market will start improving. Our large economy and young population should help stabilize things locally, despite external challenges.
FinCocktail: For new investors who might find market volatility overwhelming, what advice do you have?
Sujata Aunty: It can definitely be overwhelming for new investors, but try to understand the market's inherent nature. It is essential to grasp that markets move on a cycle of greed and fear. Markets are driven by greed and fear, and you must resist the urge to panic when prices are down or get overly excited when they rise. Patience is crucial. Don’t make emotional decisions. I would recommend new investors to regularly consult a financial advisor and keep a check on their investments at least every six months. It’s important to set clear financial goals and stick to them, even during times of market uncertainty.
FinCocktail: If you could give your younger self one piece of financial advice, what would it be?
Sujata Aunty: I’d say “Start saving the moment you get your first salary.” Save first, and then spend the remainder. Do not convince yourself that you are not earning enough to save; even small amounts, invested consistently over time, can lead to substantial wealth, and that’s the underrated power of compounding. Also, don’t be too hard on yourself for mistakes along the way. That’s how you learn!
FinCocktail: Lastly, what’s one unconventional investment strategy that has worked (or not worked) for you?
Sujata Aunty: I have experimented with several unconventional investments, and I learned early on that I must not invest in anything I do not fully understand. I have avoided cryptocurrencies and found that even ventures into commodities were not in line with my approach. Experience has taught me to stick with familiar investment vehicles where I can assess the risks and returns confidently.
🔖 Binge of the month
I recently watched Running Point on Netflix, and it made me laugh quite a bit! Kate Hudson totally nailed her role. Her performance instantly reminded me of (her mom) Goldie Hawn's films. 🎥 The show is clever, packed, and relatable, with humor that really hits the mark. Most importantly, it shows how women can absolutely take charge, and do anything so much better, so it’s definitely worth a watch!
🍸 Cocktail Pe Charcha
Is it too overwhelming to research & plan your investments? Say no more, we can personally guide you into mixing the perfect financial cocktail to manage your money!
Sujata aunty is a the most resillient and badass investor because she handles investments with a clarity and precision that comes only with decades of hard-won expertise. If she says I should/shouldn’t do something with my money, I’d trust her in a jiffy, and I think you should too! Investing is the best thing you can do with your money, but, please don’t get yourself into something you do not understand. EVER. Learn enough before you put your money in.
To making clever choices, always!🥂
Niyati❤️