Mobility paves Samsung’s silver path
The Korean giant’s early bet on mobile phones helped it hit the $10-bn mark in India, but in its 25th year it ...
“Two important things that ideal investors should do is to invest with a goal in mind and not be heavy on one particular asset class like equity. Also, beginning early and shedding behavioural biases like buying high and selling low are characteristic of ideal investors,” said Aniruddha Chaudhuri, Head-Retail Sales, ICICI Prudential Asset Management Company. He was speaking at a webinar on ‘Decoding an Ideal Investor’, jointly presented by BusinessLine and ICICI Prudential Mutual Fund on Saturday.
Investors should ensure proper asset allocation of their savings into asset classes such as equity, debt, gold and should reallocate the investments based on the returns a particular asset class has earned, he added. Chaudhuri was in conversation with BusinessLine’s Senior Assistant Editor, Parvatha Vardhini C.
Another important tenet for ideal investors is patience. Investors must give their investments time to perform. A longer holding period will help them benefit from the power of compounding and earn returns that beat inflation. Investors should not sell their investments if their mutual funds are not performing for a year or two.
If investors have a goal to create a retirement corpus, then as they are nearing that time period, it is better to move some of their equity investments into debt. For investors who have retired and have a corpus that they want to invest to earn a regular income, Chaudhuri advised that they can go for hybrid funds with a systematic withdrawal plan instead of investing in a pure equity or sectoral fund.
For investors who are just starting off their investment journey, the allocation to equity can be high. There are thumb rules for this like subtracting your age from 100 to arrive at your equity allocation, Chaudhuri said.
Also, past performance cannot be an indicator of future performance, and investors should temper their return expectations accordingly. “When you are investing in equity, you are investing into the growth of nominal GDP of a country,” said Chaudhuri. “If you think the GDP is going to grow by 5-6 per cent in real terms, that will give you a ballpark figure of what your return expectations should be,” he concluded.
The Korean giant’s early bet on mobile phones helped it hit the $10-bn mark in India, but in its 25th year it ...
Antrix should adopt a different tactic than merely fighting over jurisdiction: Experts
Invest in relationships, enterprise, behaviour, effort and learning
From different types of osmoses to new membranes, researchers have come up with ways of drawing water
Will a stock continue its current trend or will it reverse? We tell you how you can read chart patterns to ...
Sensex and Nifty 50 saw selling interest on Friday and slumped; selling pressure could continue
Investors with a long-term horizon can consider this offer
Most AMCs have been sending out cryptic e-mails. We tell you how to read between the lines
In these isolated times when people yearn for a slice of the familiar, amateur and professional chefs are ...
On the eve of his 86th birthday, a peek into an interview-based book that reveals the actor’s many moods, ...
Forget the tuna. The island nation will keep you full and happy with coconut, koftas and jasmine
This year, on Facebook, I saw that someone had posted a list of EASY RESOLUTIONS. I didn’t copy them down but ...
Digital is becoming dominant media, but are companies and their ad agencies transforming fast enough to make a ...
Slow Network, promoted by journalist-lyricist Neelesh Misra, pushes rural products and experiences
How marketers can use the traditional exchange of festive wishes meaningfully
For Fortune, a brand celebrating its 20th anniversary, it was a rude shock to become the butt of social media ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor