In bad times, how to make money

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The last few weeks have been extremely turbulent. Stock markets have been moving up and down in crazy frenzy moves, bond yields have been galloping upwards resulting in falling bond prices, precious metals (gold and silver) hitting new multi-year lows and the striking of them all - the Indian rupee hitting all time life time lows.
Keeping up with the current mood, investors would be contemplating as to where to put their hard earned money. This article attempts to dissect the opportunities available so as to zero in on the best investment option in the turbulent times.
The investment options can be dividend based on liquidity, risk, time horizon as well as the category of the asset itself.
The table above provides an overview of the various asset classes, the time horizon, type of risk, what kind of return to expect, suitability as well as the timing of the investment in a clear logical manner so as to aid the decision-making process.
Avoid mistakes
There are many simple and avoidable mistakes which investors mutually commit at the time of investing. Simple logic works far better in the market place than complex algorithms, theorems, valuations principles, DCF etc. Returns from investment come only because of two numbers — cost and selling price.
There is no other place to test one’s virtues than the market. All the qualities which make a successful human being will be tested by the market — it has its own method of finding and exploiting human weaknesses. Investing is not about beating the market or anybody else, it’s simply beating one’s own self and negative traits. Once the investor is are able to master these, then he would also become a successful investor.
The things to do are to know your investment goals, know your time horizon, recognise risk appetite, understand need for income and growth.
Invest regularly, although it may be in small lots, do your thinking and research. Don’t panic because if the market goes against you, accept your mistakes and flaws and stick to the simple rules and principles to select the best investment option.
The writer is general  manager, investments, Tata Investment Corporation Limited