Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: 5.0
Article rating: 5.0
Article rating: 5.0
Article rating: 5.0
Article rating: 5.0
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: 5.0
Article rating: 3.3
Article rating: 5.0
RSS

News

Looking for minimum risk

Author: Col. Sanjeev Govila(Retd)/Wednesday, August 15, 2018/Categories: Ask the Finapolis

Looking for minimum risk

I have a disposable income of Rs 50,000 every month. I have been investing Rs 25,000 in equity markets month on month and built a decent portfolio in the last three years. Now, this Rs 50,000 month on month can be invested by me, but I want to invest with minimum risk. Do I continue to invest in equity markets by choosing stocks that do not fluctuate much? Or, would you advise any other investments?

- Ravindranath, Hyderabad

Ravindranath, I would firstly recommend you to get a risk profiling done for yourself from a good financial planner. You would then be able to get a fix on what asset class – debt or equity – is comfortable for you and in what proportions. The time period for which you wish to invest is very important and, along with your risk profile, form important considerations for formulating the right portfolio.

When you invest in stock markets and choose the mutual fund route instead of direct stocks to do that, your risk immediately comes down due to diversification, professional management and constant rebalancing done on portfolio by the fund managers. So, my advice is that if you wish to continue in equity, go in for equity MFs. However, if you do not wish to go in for equity or want to choose lesser equity option, hybrid MFs like Hybrid Aggressive, Hybrid Conservative and Equity Savings Fund categories are available in MFs where the rebalancing and choosing equity and debt assets is done by the respective fund managers. Alternately, you can create a hybrid option yourself by preparing a balanced portfolio by suitably choosing equity MFs and debt MFs yourself. The onus of rebalancing is on you then. However, if you want to take an extremely safe option and are comfortable with the low returns that’ll come alongside that, bank and corporate FDs, and debt MFs would be the way to go.

Print Rate this article:
No rating

Number of views (71)/Comments (0)

Col. Sanjeev Govila(Retd)
Col. Sanjeev Govila(Retd)

Col. Sanjeev Govila(Retd)

Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free