Hi,
I read this article at Moneycontrol and thought it will be hlpeful for members. It is written by Mr.Amar Pandit.
What should you do in today’s market?
Here are some guidelines.
1. Don’t be concerned about what your friend, family member or other person is doing. You have to win your race but that does not mean you need to beat everyone else. Each one of us can be a winner provided we know what we want. If all you need is 8% returns, realign your investment accordingly. If you need 12-15%, then realign your portfolio in terms of equity.
2. Don’t aim for the highest returns because there is nothing called as highest returns. It’s all relative to some other number. Most sins in the equity market are committed when we aim for the highest returns. If you have got 30% from equity in a year, why should you be concerned if someone else has got 60%? You don’t know the risk that has been taken or whether it was an act of luck. You would do well to stay away from quacks who tell you what will give you the highest returns. Just day before there was a story of how a couple duped several High Networth investors including doctors, professionals and a yogi of several crore of rupees by promising to double their money.
3. Don’t invest in equities if you are not in it for the long haul (Trading is different and not meant to be confused with investing). Today the average holding period of a stock might be a year or slightly more. There will be dips in the market along the way so take advantage of these downturns by investing in a staggered fashion, be patient and demonstrate a willingness to act when others don’t.
- Amar Pandit
The author is a practising Certified Financial Planner.
-----------------------------------------
Jayant
I read this article at Moneycontrol and thought it will be hlpeful for members. It is written by Mr.Amar Pandit.
What should you do in today’s market?
Here are some guidelines.
1. Don’t be concerned about what your friend, family member or other person is doing. You have to win your race but that does not mean you need to beat everyone else. Each one of us can be a winner provided we know what we want. If all you need is 8% returns, realign your investment accordingly. If you need 12-15%, then realign your portfolio in terms of equity.
2. Don’t aim for the highest returns because there is nothing called as highest returns. It’s all relative to some other number. Most sins in the equity market are committed when we aim for the highest returns. If you have got 30% from equity in a year, why should you be concerned if someone else has got 60%? You don’t know the risk that has been taken or whether it was an act of luck. You would do well to stay away from quacks who tell you what will give you the highest returns. Just day before there was a story of how a couple duped several High Networth investors including doctors, professionals and a yogi of several crore of rupees by promising to double their money.
3. Don’t invest in equities if you are not in it for the long haul (Trading is different and not meant to be confused with investing). Today the average holding period of a stock might be a year or slightly more. There will be dips in the market along the way so take advantage of these downturns by investing in a staggered fashion, be patient and demonstrate a willingness to act when others don’t.
- Amar Pandit
The author is a practising Certified Financial Planner.
-----------------------------------------
Jayant
