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What is good investment advice today may not be good enough tomorrow: Aarati Krishnan

V Rishi Kumar Hyderabad | Updated on September 29, 2019 Published on September 29, 2019

Aarati Krishnan, Editorial Consultant, BusinessLine, sharing ‘5 Simple Secrets to Wealth Creation’   -  Nagara Gopal

Investments should be carefully planned and executed to ensure good returns, and investors should keep in mind that the advice they get today may not be valid tomorrow due to external factors and regulatory changes, said Aarati Krishnan, Editorial Consultant, BusinessLine.

Sharing ‘Five Simple Tips for Wealth Creation’ at the SURGE SME Conclave here, she said: “There are a number of investments options, but they keep changing. Therefore, investors need to take timely decisions before a particular class of investments goes out of control.”

“I have been watching the markets closely from 1994 and have seen various trends emerging, impacted by external factors and regulatory changes. A decade ago, maybe, I would have advised people to invest in property. But today, I will back equity investments which could potentially return about 15 per cent. My own experience has shown that it has returned over 13-14 per cent, way above other classes of investments,” she said.

Citing the example of ace investor Warren Buffet, she said many billionaires lead frugal lives. “Spend far lesser than what you earn and allocate funds for investments. This will provide the much-needed flexibility to invest,” she said.

Krishnan cautioned investors who want to get rich quickly, saying they might get trapped by investing in unregulated instruments and derivatives that promise “assured” returns.

She advised investors not to get ‘attached’ to their investments and favoured a periodic review and churning of investments — exit the bad ones and invest in new ones.

Earlier, M Somasekhar, Associate Editor, BusinessLine, in his opening remarks, highlighted how the daily, since its launch 25 years ago, has been offering news and well-researched insight into the economy, corporate world and stock markets, among others.

Published on September 29, 2019
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