Say no to Equity investments :
Equity has proven it self as a good asset class since from many years, it is one of the most favorite and more talked about asset class.
but stay away from this asset class if :
You want to earn money in day trading ( during your job timing ) depending on the tips ( you can also come out with tips just give one upper and one lower figure ) from your broker.
You want to buy and sell the stocks on your friends advice who you feel have a very good knowledge ( ? ) in stocks.
You want to trade because you heard from many people that you can make a money ( it is true but be aware this is not a general statement ) .
Want to invest in only blue chip ( there are many companies who may turn up bad selection ) companies and leave it for years which you expect to give you good returns.
To save tax as per the new facility in Budget.
Because you have a money with you and you feel that you can take high risk ( many people ignore a flip side of risk , it may washout your entire capital ).
Your bank has a facility and they are ready to give you a relationship manager ( whose ? ) who will handle you a/c and will help you in wealth creation ( for whom ? you or bank ? )
You want to build a good portfolio watching TV channels, reading news papers ( The so called experts will give comments as per the flow, just follow their statements regularly then you can rally make out, So i call it as a Financial entertainment channels.These experts favorite scripts keeps on changing and they give you advice to invest in long term. :) )
Your views or questions please :
About the author : Ashish Ramesh Bhave is a CERTIFIED FINANCIAL PLANNER, focused and specialized in financial planing for individuals and families. Can be reached at : arbfinancials@gmail.com or Cell : 08793107044
Equity has proven it self as a good asset class since from many years, it is one of the most favorite and more talked about asset class.
but stay away from this asset class if :
You want to earn money in day trading ( during your job timing ) depending on the tips ( you can also come out with tips just give one upper and one lower figure ) from your broker.
You want to buy and sell the stocks on your friends advice who you feel have a very good knowledge ( ? ) in stocks.
You want to trade because you heard from many people that you can make a money ( it is true but be aware this is not a general statement ) .
Want to invest in only blue chip ( there are many companies who may turn up bad selection ) companies and leave it for years which you expect to give you good returns.
To save tax as per the new facility in Budget.
Because you have a money with you and you feel that you can take high risk ( many people ignore a flip side of risk , it may washout your entire capital ).
Your bank has a facility and they are ready to give you a relationship manager ( whose ? ) who will handle you a/c and will help you in wealth creation ( for whom ? you or bank ? )
You want to build a good portfolio watching TV channels, reading news papers ( The so called experts will give comments as per the flow, just follow their statements regularly then you can rally make out, So i call it as a Financial entertainment channels.These experts favorite scripts keeps on changing and they give you advice to invest in long term. :) )
Your views or questions please :
About the author : Ashish Ramesh Bhave is a CERTIFIED FINANCIAL PLANNER, focused and specialized in financial planing for individuals and families. Can be reached at : arbfinancials@gmail.com or Cell : 08793107044
Great Article. We always love maximum returns in no time, But always ignore the other part we may loose very badly.Well written article
ReplyDeleteHitesh
Thanks Hitesh,
DeleteThis is some thing people really ignore. As well as investing in equity requires lot of research and analytical skills.
Keep on reading, your comments are welcome.
This is a good article for DONTS. Why dont you write an article for DOs to guide the people?
ReplyDeleteThanks Kriams , for your comment , soon i will write on Do's as well.
DeleteOften big banks give the formula for wealth distribution as (100 - your age)% investment into equity. I think it is too big a risk.
ReplyDeleteDear Kriams, It is a normal thumb rule in investment , but thumb rules may not help you in achieving your financial goals.You have to invest as per your need and requirement means you financial goals let them decide what should be the right allocation strategy for you.
Deletethis may help you
http://arbfinancials.blogspot.in/2011/10/financial-planning-basic-rules-8.html