New Delhi. This year has not been as good for investors as 2021 was. Despite the impact of Covid-19, Indian markets had given tremendous returns to investors. However, the Ukraine-Russia war, rising inflation due to high crude oil prices, tight monetary policies and fear of recession in 2022 broke the back of the money market. The situation is looking more or less similar for some time to come. In such a situation, what options do people have for investment?
Why should this be your investment strategy in such times? It is very important to understand where and how much you should invest. If you take decisions related to your investments thoughtfully, then it is certain that any major upheaval in the market will not have much impact on you. Today we will tell you how to prepare your portfolio?
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Do not invest money only in equity
The purpose of investing money in the share market is to earn more in the short term. However, experts believe that you should stay in the stock market for a long time. Of course, equity has the potential to give you higher returns in a shorter period of time than any other asset, but the risk factor in it is also equally high. Therefore, instead of putting all your investment in shares, pay attention to debt and gold also. According to experts, you can divide your investment in these assets according to your risk appetite. Suppose you have the ability to take more risk, then invest in equity, debt and gold in the ratio of 70-25-5. If you want to take moderate risk then make this ratio 45-45-10. Whereas if you want to take very less risk then make it 20-70-10. Currently, investments in equity can be made in large and mid cap and multicap categories. Whereas in debt you can see maturity funds and dynamic bonds.
Why different asset classes?
Investment experts believe that uncertainties still remain in the market. In the short term, global trends are also not looking any better. In such a situation, focusing on any one asset class may prove wrong. Instead, people should focus on different asset classes. According to experts, you should invest keeping in mind these two factors: how much risk you can take and how much time you can spend in the market. That is why experts are advising to divide the portfolio into equity, gold and debt.
investing in gold
Generally people invest in gold so that they can get some support here if they are incurring losses in other asset classes. Therefore, as a standard, 10 percent of the portfolio is invested in gold. Sovereign gold bonds can be considered for investing in gold. In this, an additional benefit of 2.5 percent is available in the annual return. Investing in gold gives you security during market uncertainty.
Tags: Debt investments, Investment tips, Money Making Tips, Gold
FIRST PUBLISHED : November 1, 2022, 10:33 IST