Stay focused on asset allocation and risk management: Vetri Subramaniam
«The only thing under your control as an investor is your asset allocation, your financial goals and your ability to manage your risk. What the market will do is outside your control, it is outside your knowledge, it is in the realm of unknown,» says Vetri Subramaniam, CIO, UTI AMC.
The party continues and I have been told that the new definition of party is that it continues till the sunrise if you are in India and if you are in Goa. So, looks like the party which started three years ago will extend itself.
Vetri Subramaniam: Well, bull markets have a way of continuing, but they also have a way of ending abruptly. So, you do not want to be the last one to leave the party.
What should one do because anybody has made a case that valuations are rich, there is froth building up in small and midcap stocks, watch out there is bubble and trouble coming because of the way how central banks have been following a loose monetary policy, those concerns, in a sense, have not disturbed the market. These concerns existed three months ago, six months ago, one year ago. But markets perhaps have learned to live with it. So, what should one do in this kind of a market when you know concerns are there, but markets are ignoring them?
Vetri Subramaniam: Good question and I would actually say that you are asking a question about things which are unknown. You will never know when a market makes a bottom. You are never going to know when it makes a top. These things are known only post-facto.
So, my suggestion to investors, and this is
