Is It Good Time for Retail Investors?

March 13, 2007	(3 votes, average: 3.67 out of 5)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

Real estate investors seem to be in two minds. Going by the recent trends, they seem to be confused on where to invest and where not to?

According to a senior market analyst, the market was down due to host of international as well as domestic factors that always happen. Such short-term movement of the market does not have any connection with the economic or corporate fundamentals.

A financial planer was of the opinion, that the market performance is still very good. In the short-to-mid term, the market is likely to be volatile due to various reasons like higher inflation, interest rate and asset prices. But that shouldn’t bother the investors.

While another expert, asked the investors to use such fall or rise in the stock market to rebalance their portfolios.

His advice was investors should stick to their asset allocation plan. If their original allocation plan was to invest 50 per cent in equity and the rest 50 percent in debt, but if the market slumps, then they will see that their equity investment will come down to 40 per cent.

That’s the time, when the investors should try to sell a part of their debt portfolio and try to get back to the original 50 per cent equity allocation. And they should do the opposite when the stock market rallies.

However, Ajay Bagga, CEO, Lotus India AMC said, he thinks retail investors should stop thinking too much about the stock market and rather should concentrate more on their asset allocation.

He further added that monitoring the stock market daily is not going to help them. It will only give them worries on some day while happiness next day. They should keep long-term plans and not shorter plans in their minds.

News Published Under:   Retail Market in India |

Comments