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Summary
Article Name
Understanding Asset Allocation - Infographics
Description
studies have proved the reason for financial success is 90% because of asset allocation and rest 10% for other things like choosing assets and economic conditions. Asset allocation is through which small investors can make real money, provided they stay disciplined
Author
Madhupam Krishna
Publisher Name
thewealthwisher (TW2)
Publisher Logo
kishor says
Always invest money in different type of stock….but just I have one question I am new in stock Market and want to invest 5l so how can I invest….Please suggest
Madhupam Krishna says
Dear Kishor,
We have always advocated that retail investor should take MF route instead of taking on direct equities. This is because of 2 primary reasons. One is you should be willing to spend time in markets analyzing the companies you are going to invest. This is a full-time job and if you are ready for it then only should invest directly. Any half-hearted approach may see you burning your hard earned money. Many people have fallen badly and their stories are all over the net. Secondly, direct equity space is majorly controlled by brokerage houses who engage relationship managers on revenue targets. They suggest/execute a transaction without looking at the client. They churn portfolio, invest in F&O and make you a day trader. If you can escape them, then go to investing in direct equity.
Otherwise, best is MFs and if you see long term returns from both approaches are nearly same. So why to choose sleepless nights? Take care…