2023 in Review: 17 important lessons investors should learn from this year
1. Financial literacy: Anshul Arzare, MD and CEO, Yes Securities, believes that staying updated, mitigating risks, being persistent, planning, and budgeting, are essential ingredients for financial success. 2. Caution against unforeseen occurrences: Arzare also advised that it's prudent to anticipate unforeseen occurrences, such as the existing geopolitical tensions and the recovery challenges faced by developing nations post Covid.
3. Focus on quality: Arzare also warned that individual investors should exercise caution and avoid depending solely on the momentum observed in the grey market when considering investments in IPOs. Instead, the focus should be on quality companies with strong moats and reasonable valuations to ensure sustainable returns.
Lastly, do not try to time the markets - it’s a recipe for disaster. Market fluctuations are an inherent feature, so avoid impulsive responses and instead adopt disciplined, research-driven investment practices with proper asset allocation to navigate volatility and cash flows. 4. Focus on the long term: Arzare stated that is important to understand that wealth creation is a slow process and needs disciplined and patient investing.
Therefore, to reap benefits, investors should have a long-term perspective when investing toward their financial goal. 5. Invest systematically: No one can predict the timing of the market correction or the period of the bull phase.
These bull and bear phases of the markets are driven by sentiment in the market. When sentiment s positive, the market will continue to do well while the market will fall in a fear scenario. Hence, investing systematically in a market rather than investing in one tranche is recommended, said Neeraj Chadawar of Axis
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