Investing money to achieve varied investment goals is a process that requires investors to follow a disciplined approach through their defined time horizon.
However, considering that different asset classes behave differently over different time periods, asset allocation plays a significant role in deciding the kind of returns one can expect and the kind of risk one could get exposed to. Of course, when it comes to investing in the stock market either through mutual funds or directly, investors have to contend with turbulent periods that may test their patience and perseverance.
Over the last six months, the market has turned volatile and its impact is clearly visible in the valuation of investors’ portfolios. A number of domestic and global factors such as the reintroduction of the long-term capital gains tax on equities in the Union budget, tension between North Korea and the US, escalating trade war between the US and China, rising oil prices, tightening of interest rates in the US as well as rate hike by the RBI have contributed to this volatility during this period.
This story is from the Dalal Street Investment Journal Vol 33 Issue 17 edition of Dalal Street Investment Journal.
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This story is from the Dalal Street Investment Journal Vol 33 Issue 17 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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