Be selective and patient while constructing portfolio: Vikas Pershad

Vikas Pershad, Founder & CEO, Veda Investments

Given the kind of market volatility that we are witnessing, the turmoil in the market, what will be your advice to investors? Should they look at dips as buying opportunities or should they just stay away?

This is the first time in several decades that we are not in a market that is a buy on the dips market entirely. That has worked since the late-1970s, early-1980s. These days you have to be much more careful. When you are constructing a portfolio, you need to pay of course your attention to it, be more selective. I would recommend that your average position size is smaller and you typically would have it that you are willing to trade around and just from 2005 to 2007, long made sense in Asia, 2008 short made sense, long again last year. This year, it is not going to happen as you have seen in the first few months. So be selective and be patient.