KNOW YOUR RIGHT MIX OF ASSET CLASS
Let us start with a story, maybe depicting the dichotomy of equity investors in the current situation…
Once upon a time there was a trader, who use to carry goods on his horse for long distances…But last few days, the road he was travelling on had gone bit treacherous, due to incessant rains…
Thus he had to walk along the horse and this was taking lot of his energy and time…On the top of it he would see people laughing at him all this way along…
His dilemma was should he abandon his trusted horse and look for some bullock cart? Though the bullock cart would be able to carry more goods, but the time taken to reach his destinations would be more then 2-3 times then the horse …
Just like the current Equity investors, he was stuck with the thought…should be bear the current pain and temporary slow pace or dump the equities and buy safer and steadier assets?
The answer too lies in the story….The choice of the right vehicle be it for carrying goods or reaching your goals is determined by your objective or needs and you need to choose the right mix of assets or right mix of vehicles…
This week’s Fisdom:
Friends, the bane of equity markets is not only it is one of the most glamorous asset class, it is one of the most volatile one too…And the prices are reflected on daily or every minute basis…The other fact is , real estate and Equities have been the fastest wealth creators, not only in India, but globally. Currently the road may look little treacherous, but in long term Equities are one of the very productive assets and the right of amount of asset allocation, will ensure you safe landing for your goals…Happy Investing.