Smart Investing..

Need / Goal based financial planning: Investment into various investment products just for the appreciation/return given by the product or expected is not the right way to look at investing. Investors should always make a financial plan before they invest based on their needs and goals. They should understand their need, goal, risk appetite, time horizon and product details and then invest. This can only be achieved by proper financial planning. Asset allocation: Asset allocation is the key and investors should never ignore the basic principles of it. They should always be properly invested in various asset classes depending on their risk profile and time horizon. Proper Review and rebalance: Investors should keep a time table, ideally once in every quarter, to review the portfolio of various asset classes where they had invested. When the needs, risk profile and goal’s change due to various reasons then is the time we should go back to the portfolio made and do a proper review and

BRIC economies of Brazil, Russia, India & China will represent the major growth in world economy. China tops in actual returns for 2007 with the Shanghai Composite Index returning around 80% followed by Indonesian Composite Index with 52% and India’s Sensex with 45%. Concerns on valuations remain in China and some analyst expects Chinese markets to correct as the valuations seem to be very much stretched. On the other hand in India the valuations are justified by higher earnings growth and strong fundamentals. India also looks attractive to lot of analyst as the domestic demand is increasing and their reliance on US is decreasing. Indian economy is less susceptible to the happenings in the world economy & has increased the trade among other developing nations and with Europe. S&P believes the bull market in EM equities has further to run and the EM equities should represent a core, long-term holding in U.S. investor portfolios which will make sure that the local EM market