Things To Remember While Investing

Vijay Patel

- The very purpose of investment is to generate adequate wealth to fulfil one’s various financial goals – be it child’s higher education, their marriage, buying a house or a car, a foreign trip or retirement. The beauty about investing is that if planned well one can achieve all of these in a comfortable manner. For a lay investor, given below are the five aspects one should be mindful about:

1) ASSET ALLOCATION

The basic premise of successful investing is optimal asset allocation. Asset allocation means investing across various asset classes on basis of one’s financial goals, risk appetite and investment tenure. People often believe that choosing the right set of stocks is what matters but research over time has shown that getting the asset allocation right is what contributes the most in the wealth creation journey. This is because in every phase of the market certain asset classes deliver returns and some don’t. But there is no way of predicting which asset classes will be a winner year after year. So, spread one’s investment across equity, debt, gold to name a few.