Do you have the feeling that the return on your investment portfolio is lower than what others are earning? Or, you feel that the breakup of asset classes/investment products in your portfolio is not correct. Or, the timing of your investments has always been wrong. Then, you are at the right place. Please post any such queries and we will answer .
The investors almost always fall prey to greed and fear. They invest when the market is at high and they exit when the market is low. They generally run behind every asset class after it has given very handsome returns and a large part of the return from that asset class is over – be it equities, bonds or gold. Only when big advertisements showing excellent return generated by an asset class in period gone by are dangled in front of them – they invest and not when they ideally should be investing. When the asset class valuation is down in the dumps due to the all prevailing negative news flow around it and due to adverse developments around that class. It is at this point of time that the asset class offers attractive valuation and attractive entry point. Yes, there can be risks from that level also but the downside will hopefully be lower than what it will be when investing in an asset class at high valuation. Also that it is important to continue to regularly balance investments across asset classes. Whenever a particular asset class weight in your portfolio goes beyond the assigned weight – the weights need to be re-balanced. This will ensure that the return generated from an asset class by investing at the right time also gets captured and it doesn’t become a story of portfolio going up with market conditions and then coming down again with market conditions.
So, if you have any questions related to your existing investment like
Do you feel that returns on your investment portfolio are lower than what others are earning?
Do you feel that the breakup of asset classes/investment products in your portfolio is not correct?
Do you think that the timing of your investments has always been wrong?
Or, any other questions?
Please post your queries in the ‘Contact Us’ section and we will be happy to answer those.