One should properly diversify the portfolio, but over or under-diversification will not work. Reasonable diversification is important, says Mukesh Kochar, National Head of Wealth, AUM Capital.
In an interview with MintGenie, Kochar said that investors must refrain from investing in a sole financial instrument or those of the same kind of instruments, as putting all eggs in one basket can be a risky move.
Most of the new-age investors have not seen any downfall in the equity market. Investors who have come to the market post covid have enjoyed a rally in the market with low volatility. One must be aware that the bull and bear phases are synonymous with the market, and the bull market will not last forever. So first of all, allocate only long-term funds to the equity market and maintain proper asset allocation with goal-based investments.
One should properly diversify the portfolio, but over or under-diversification will not work. Reasonable diversification is important. Invest regularly and use any deep fall in the market to invest. One should not look to make quick money as this may be risky and capital may erode. Avoiding the noise of penny stock is very important. One should look at the broader picture over the long term while investing. These are a few things one can keep in mind.
Investors generally invest more in a rising market and sell and remain sideways in a downward-trending market. Also, they start very late and expect extraordinary returns in a short period to make quick money. One should always invest more in a down market and wait patiently with regular investment to reap the benefits in a bull market. The longer the investment, the more the power of compounding works and hence higher the multiplication of money.
Even a trivial financial mistake can derail people from meeting their financial objectives. One such mistake is the absence of diversification in different asset classes. One should refrain from investing in a sole financial instrument or those of the same kind of instruments, as putting all eggs in one basket can be a risky move for any investor. Inadequate knowledge and disregard for prevailing market conditions is another mistake that can make investors inefficient in accomplishing their financial objectives.
Another mistake is not starting early investment in financial planning for retirement. To have financial security during retirement, one must start early. Creating PPF accounts and investments via SIPs is a great way to build a larger retirement corpus. These are some of the mistakes that can be rectified by investors to avoid facing a financial crisis in the long run.
One should read financial newspapers in digital apps regularly. Since people are busy in their areas, financial advisors can be consulted for any such thing.
Asset allocation is the base which has to be done prudently to get the desired result. Otherwise, overallocation or under-allocation is hazardous. This can be done based on tenure, expected risk-return, market conditions, opportunities, hedging, etc. Earning is the outcome of asset allocation. So asset allocation is a process and earning is the outcome. So, focus on the process rather than the outcome.
Nowadays, most of the retail volumes are generated via online mobile applications, resulting in a significant amount of investment from young investors. Technological advancement has made it possible for people to conveniently invest in the stock market.
At the same time, Covid-19 has played a pivotal role in introducing these investors to the market. There had been a downturn in the stock market followed by a gradual rise, resulting in many investors earning money for the first time. It is also evident that youngsters are seizing the opportunities provided by the Indian market into early savings so that they can achieve their long-term goals through the capital market. As the Indian market continues to offer opportunities to the younger generation, this base will likely expand even further.
The future of the wealth management industry is coupled with human expertise and digital prowess. Post-COVID, the wealth management sector has witnessed a significant digital transformation. Wealth managers have seemingly boosted their efficiency by embracing a platform-oriented approach, giving personalised assistance, and customizing investment approaches to create a holistic approach to meeting the demands of individual clients. The inclusion of technology will propel the importance of data analysis while protecting the invaluable client-advisor connection.
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Published: 19 Feb 2024, 08:55 AM IST
Egypt’s Finance Minister Mohamed Maait announced the successful delivery of over 28,000 new, eco-friendly cars under a presidential initiative to replace older vehicles.
Despite economic challenges including supply chain disruptions and inflation, the initiative has provided beneficiaries with current-year models at below-market prices and with 7 or 10-year installment plans.
Launched in March 2021, the initiative allows recipients to replace vehicles that are 20 years or older.
The government has demonstrated its commitment to promoting eco-friendly transportation by allocating EGP 718m in green incentives for these cars. Participants also benefit from a 3% flat annual interest rate, reduced insurance costs, and a complimentary EGP 100,000 personal accident insurance policy for the driver.
The initiative has expanded to numerous governorates, including Cairo, Giza, and Alexandria, reflecting the government’s goal of broadening the program’s reach and promoting green transportation nationwide. This effort aligns with fostering a green transition, increasing the prevalence of eco-friendly vehicles, and localizing the automotive industry.
The Minister emphasized ongoing efforts to develop Egypt’s automotive sector, with the aim of establishing the country as a regional hub for car manufacturing and export.
The government envisions a future where electric vehicles gradually replace traditional cars, contributing to the expansion of clean energy, reducing reliance on petroleum products, and easing the financial burden on citizens.
Congratulations to recent college graduates. Many graduates have already landed a job. Others may still be looking for an offer or waiting until summer’s end before job hunting. Whatever path you’re on, once you’re earning an income it’s critical to establish a solid financial foundation.
That’s always been true. But the changing nature of work — likely defined by multiple jobs and fluid careers — increases the need for embracing sound personal finance.
Three quick points. First, you’ll make mistakes with money. Everyone does. That’s how we learn. Second, keep your money management simple. Life is busy enough without falling into financial complexity. Finally, doing well with money isn’t rocket science. Good money management mostly involves developing a few good spending and savings habits. Here are several suggestions:
Concentrate on your career. Your most important financial investment is in your career(s). The big return on investment comes from the income you earn from your knowledge. Plan on continuously investing in your skills.
Create a budget. A budget lets you know where your money is going, and where you might want to make some adjustments. The information is vital.
Start saving with your first paycheck. This is true even if it’s a miniscule amount (which is likely). Put your savings on autopilot and adjust the sum upward when your pay increases. Savings is both your emergency fund and your opportunity fund.
Embrace frugality. There is a wide range of frugal behaviors, and you should find the thrifty habits that work for you. The frugal path means being cautious with debt. Frugality leads to greater freedom of choice. (Most college graduates owe on their student loans; research your repayment options and pick the best choice for your circumstances.)
Start the habit of giving money away. The thoughtfulness that comes from deciding where to give money creates strong connections to our community. The act of giving is a powerful reminder of what matters.
Invest in your financial education. There is no shortage of good resources, ranging from your employer to community organizations that promote financial literacy. Looking over my bookshelves, I’d highlight “Get a Financial Life: Personal Finance in Your Twenties and Thirties” by Beth Kobliner.
That’s enough to get started. Good luck on the next stage of life!
Chris Farrell is senior economics contributor, “Marketplace”; commentator, Minnesota Public Radio.
MOUNT VERNON, Ill. — The Mount Vernon Township High School finance committee and school board will meet Monday, June 24. The finance committee will meet at 5:30 p.m. and the board will meet at 6 p.m.
The finance committee meeting agenda is as follows:
Mt. Vernon Township High School
FINANCE COMMITTEE MEETING
Monday, June 24, 2024
5:30 p.m.
The agenda for the board meeting is attached:
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