Why your investment policy statement is key to wealth creation
Are you a spendthrift seeking instant gratification or you want to hoard it all for future use or you take the middle path? Whichever category you associate yourself with, your investment portfolio would reflect it in some manner. Now, if you go back a little to your formative days, you will realise that the initial framework (on your money attitude) was based on your experiences since your childhood days. The environment you grew up in. The money management methods you noticed in your parents. All these factors influence you in your investment journey.
To buy, sell or hold
Let us now consider this often-experienced occurrence. You bought a stock at R40. What would your reaction be if the value dips to R20, when in fact the stock had risen to R60 and only greed stopped you from selling? Sounds familiar, right? This is plain greed and not to be confused with your attitude towards money.
Now, letís consider another scenario, which you can easily recall. In late 2011, when the Securities and Exchange Board of India (Sebi) stated that the minimum public holding in listed company has to be 25% by a certain period, you found many of the identified stocks in
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