Diwali 2023: How should investors invest to create wealth for a bright future?
The auspicious occasion of Diwali, the festival of lights, is a golden time for investors to purchase gold, property investment, or invest in other things. The celebration for the five-day Diwali festival started today, November 10, with Dhanteras. The festival will be followed by Chhoti Diwali on November 11, Diwali, the main festival, on November 12, Govardhan Puja on November 13, and Bhai Dooj on November 14.
So let's find out how you can significantly advance your financial objectives throughout this Diwali season and what your ideal investment plan should be.
According to personal finance experts, investors should focus on consistency of performance and risk-adjusted returns rather than just top performers. Proper asset allocation, diversification, and periodic rebalancing are important. Investing in equity funds over a long period is recommended.
“In general,investors follow the historical performance of a fund while considering investment in any fund. It should be filtered out as it does not help to see the performance in isolation. In the years to come, the top performers of last year may or may not deliver good returns. Consistency of performance, rather than top performance, should be taken into account by investors. Furthermore, it is necessary to take account of risk-adjusted returns instead of performance alone," said Mukesh Kochar, National Head of Wealth at AUM Capital
If funds are to be identified in conjunction with the trend of the market, then values such as Standard Deviations, Sortation Ratio, Sharpe and Beta, etc. should be used, he added.
Proper asset allocation, with proper diversification and periodic rebalancing of the portfolio, must be maintained at all times.
Kochar says that it is important
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