Asset Allocation Is The Key To Personal Finance Management
Life is a beautiful journey & we all are travellers…
Last week, my rear view mirror came off of the windshield, and I had to glue it back on in order to see what was behind me. I realized that the designers of that car wanted me to be able to see much more of what was out in front of me, than what was behind me. That tells me that where I am going is much more important than where I have been! The same is true in life. We have a brand new year with endless possibilities and we must make the best of it with the help of God & our efforts…
Equity Markets are zooming at a pace, as if there is no tomorrow…the market is touching the PE of 27 today…considered very high from valuation point of view…and more & more people are having left out feeling….
This week I had 3 clients wanting to shift their PPF balances to Equity Mutual Funds….saying PPF returns of 7.8 % p.a. look tiny as compared to their mutual fund holdings…
The same case applies here…looking at the rear view mirror or past returns and throwing caution to wind, and not looking at the large windscreen…what will be their reaction in case the markets fall? Please understand your risk appetite instead of getting lured by past returns… and only as per your needs & avoid any greed.
This week’s Fisdom:
Please remember asset allocation is the key to personal finance management and it is very easy to get swayed by the past returns…
You should ideally consult your trusted your financial advisor, who can help you navigate this beautiful journey, with least amount of hickups…
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