Archive for June 12, 2006

Proper asset allocation is key to wealth

Publication: DNA;   Date: June 26, 2006;    Section: Personal Finance;   Page: 24

Asset allocation is the most important decision that an investor must make to achieve his financial goals and effectively manage risk. In simple terms, asset allocation is spreading your money across a mix of asset classes, namely bonds, real estate, equity (direct stocks, mutual funds), gold and cash.
Recently I met Rakesh Sharma, a 44-year-old corporate executive, who wanted to get his financial plan done. I asked him: “What, according to you, is probably the most important decision you can make as an investor in achieving your financial goals while effectively managing risk?”

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Protect your portfolio before a downslide Working out a plan for a shattered Ashwin Bhagat

Publication: DNA; Date: June 12, 2006; Section: Personal Finance;   Page: 24

For the stockmarket, the week from May 15 to May 22 was replete with such wild gyrations that there may be very few who escaped unscathed.
The talking point everywhere is, why did the Sensex go down? Where will it go next?
The second query, we all know, is an exercise in futility as no one can predict with certainty how things will go with the stockmarket barometer. I know of many wealthy clients who lost lakhs of rupees in just one day. The question I would like to ask them is, “Why get into such things in the first place? Is it really worth the trouble?

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