balance of payment crisis. The measures taken then helped the economy grow faster a decade later. Similarly, as an investor, you need to have a portfolio framework and monitor it regularly to make your investments grow.
Understanding your risk profile and the asset allocation is the key. Do not go by your peers’ investments and returns. Lay down your investment goals, the time horizon and anticipated returns. For investments with five-year-plus horizon, equity should be the asset class. Look at companies with growth potential and low debt in their books. Always remember that volatility is not risky and the sooner you understand the difference, the better will be your investment strategy. Smart investors always take advantage of volatility.
Inflation is sticky and you cannot wish it away. At this moment, investing in longer-term funds in debt is recommended. While you can’t control the external environment, you can always manage your investment strategy. So, always keep your investment strategy simple and easy to understand to reap long-term gains.
The writer is founder and managing partner of Zeus WealthWays LLP