Investors should have an asset allocation strategy in placeThis remains the first key.
There is no one-size-fit all solution in investing however some standardization can be done through asset allocation, said Aziz.
The asset allocation strategy should be based on factors like goals, horizon of investment, risk appetite and liquidity requirement.
Rebalance as and when required as per your asset allocation strategyThese portfolio mix can help in targeting respective return with calculated risk.
Continue your SIPs - Timing in the marketThe analysed 2 scenarios where Azeez has taken the investments of 2 investors of Nifty .
Lok Sabha Elections 2024: As we enter the last phase of election season the nervousness is likely to set in ahead of the election results next week, The investors however are advices to follow the simple and basic strategies as per experts as Feroze Azeez, Deputy CEO, Anand Rathi Wealth Limited.
Investors should have an asset allocation strategy in place
This remains the first key. There is no one-size-fit all solution in investing however some standardization can be done through asset allocation, said Aziz.
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The asset allocation strategy should be based on factors like goals, horizon of investment, risk appetite and liquidity requirement.
While investing we need to build a strategy with the right asset mix based on our risk appetite to meet our goal. Debt and Equity have a low correlation and a combination of these two assets can help in targeting a return around 12% based on your horizon of investment, said Aziz. Equity funds have delivered an average return of 14% over longer tenure and Debt MF have approximately delivered 6% return.
Stick to asset allocation
Choose right asset classes and stick to them. Rebalance as and when required as per your asset allocation strategy
These portfolio mix can help in targeting respective return with calculated risk.
Invest across market caps for balanced returns
Nifty 50 and Nifty 100 are expected to deliver 15-16% earnings growth in 2024-25 while the growth of Midcap 150 and Small cap 250 are expected at 11-15%. Indian corporate profits are on a healthy growth path across the three segments.
Also Read- Lok Sabha Elections 2024: Market may see sharp 20% decline if election results deviate from expectations -Experts
Attractive valuations of Small Cap and fair valuation of Large Caps: Nifty 50 and Nifty large cap 100 are currently fairly-valued, there is froth in Nifty midcap 150 and considerable upside to Nifty smallcap 250.
Continue your SIPs - Timing in the market
The analysed 2 scenarios where Azeez has taken the investments of 2 investors of Nifty . When invested in peaks for 5 years the return came at 10.84%. nevertheless when invested regularly through SIP, the returns came 14.02%
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions
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