Showing posts from April, 2021

Model Stock Portfolio: Long Term Equity Investors

  Model Stock Portfolio: Long Term Equity Investors  Generally, we can find three types of investors based on Investing Strategy in the Equity Market. Investing Strategy is here nothing but as a Diversification of Stocks. There is a Conservative Investor, Moderate and Aggressive Investors.  According to Equity investment theory, these three types of investor varies to one's risk nature. Although the investment is usually made in the form of Asset Allocation, the Diversification based on Sectors is required in the Equity Investing.   Diversification is very helpful to reduce the risk involved when investing directly in the Stocks, but not in the equity oriented funds. We see the diversified investment approach as the type of investor. In doing so we can balance the volatility that occur in the short term to long run. This strategy allows the investor to make better returns in the long term without incurring significant losses. We can have a Model Stock Portfolio for the three types

India's rising retail inflation - Consumer Price Index in March 2021

 India's rising retail inflation - Consumer Price Index in March 2021 Inflation in India, since 2012(Base rate of 100) is estimated in terms of Retail Inflation. Significantly, the WPI(Wholesale price index) was previously calculated. At the end of March 2021, the Retail Inflation stood at 156.8 Points where the country's CPI Retail inflation rate rose to 5.52 Percent. It is noteworthy that the CPI Inflation in the month of January 2021 was 4.06 Percent. The current said inflation rate has been higher than the market expected. Inflation rose in March due to high prices in Food products, especially in Pulses. Food Inflation stood at 4.94 Percent at the end of March, up from 3.87 Percent in the month of February. The prices of Pulses has increased by 13 Percent. At the same time, the Vegetable prices declined slightly to 4.83 Percent.    Fuel and Light prices rose from 3.53 Percent to 4.50 Percent. Clothing and Footwear were increased to 4.41 Percent in March, earlier it was 4.21

Risk Profiling is for the Self Examination

 Risk Profiling is for the Self Examination Before starting any investment, it is a good idea to test yourself. Self Examination, which can be called Risk Profiling has 3 Stages. Risk Required Risk Capacity Risk Tolerance For example, suppose your are going to invest in the Equity(Stocks) Market. We know that the Stock Market is generally a high Risk investment product. Market Volatility is high in the short term is guaranteed in the Equity Segment. We cannot avoid this. This is what we call as Market Risk (Required risk).  Only by understanding these type of requirements, we can balance in the Investing of Equity. However we would generate better returns in the long run.  The Second risk is your Risk Capacity. This position will tell you that whether you have enough capacity to handle the risk or risk involved when investing in the Stock Market. Here we can find out how much you are going to invest and ensure about your Family will suffer financially if there is a loss in the Market.