Indian markets at these levels, Invest or not to invest??
During one of my presentations two of my clients Mr Ram and Mr Balram (name changed) where arguing on the time to invest in the market. Mr Ram was of the opinion that its not a good time to invest as the present valuations are not right, it’s overheating, there is liquidity concerns etc. On the other hand Mr Balram had a different view. He said invest into few good companies and forget about it for some time and the argument continues...
So who is correct??
In my opinion both are correct. The difference is in the way they invest. Mr Ram is a trader who tries to invest at a lower level and exits at a higher level. For him actual non-cumulative return is what matters the most. He only keeps profitability view and not long-term view. Mr Balram on the other hand is an investor. He wants to put money not for the short term but long term (4 to 5+ years). He try’s to put a system in place to achieve his goals and dreams. He is most bothered about the long-term markets and long-term economic concerns
What I am trying to convey here is before investing one should find out ones risk profile, investment horizon, goals, plans, investment experience etc and then only invest. This plan/profiling will give a picture of the real you.
Lot of people goes by what others are buying, what others have in their portfolio, what’s the best selling fund as per lot of advertisements etc and not by proper profiling. The worst is people buying a mutual funds or insurance for tax purpose and not for what the real benefit of the fund is.
Lets invest wisely
Keep reading...
So who is correct??
In my opinion both are correct. The difference is in the way they invest. Mr Ram is a trader who tries to invest at a lower level and exits at a higher level. For him actual non-cumulative return is what matters the most. He only keeps profitability view and not long-term view. Mr Balram on the other hand is an investor. He wants to put money not for the short term but long term (4 to 5+ years). He try’s to put a system in place to achieve his goals and dreams. He is most bothered about the long-term markets and long-term economic concerns
What I am trying to convey here is before investing one should find out ones risk profile, investment horizon, goals, plans, investment experience etc and then only invest. This plan/profiling will give a picture of the real you.
Lot of people goes by what others are buying, what others have in their portfolio, what’s the best selling fund as per lot of advertisements etc and not by proper profiling. The worst is people buying a mutual funds or insurance for tax purpose and not for what the real benefit of the fund is.
Lets invest wisely
Keep reading...
I could not agree with u more..its true that most people invest witout thinking what they are actually looking for.. most of the investors do not have any goals.
ReplyDeleteI have personally seen people investing in Tax schemes just to save tax and not be bothered if there are any other benefits attached to it, I would not call such investments as SMART INVESTMENTS!!
Investing before planning is like gambling.
ReplyDelete