To get the live trading tips join us on whatsapp 9039542248
Indian equity markets have
lost momentum over the past year. It's easy to speculate on reasons for the
drop and wonder if we should stop investing or withdraw money (we started
getting emails like this!). However, the development of a simple,
market-independent strategy based on systematic risk reduction would be much
more effective.
Why? We have no control
over market returns. Yes, asset allocation with regular rebalancing and
diversification within each asset class will reduce this uncertainty, but we
are still slaves to market turbulence.
So, a market-agnostic
investment strategy aims to ensure that the current corpus is above or close to
the required target corpus (at the time of review) at any point in the
investment journey.
The advantages are apparent. We invest systematically and manage risk in the portfolio regardless of market conditions. There is no need to follow market news or market ratings. No need to take media pundits seriously and worry about what to do. Once set up, systematic management can be run on autopilot with no more than 30 minutes of portfolio review once a year!
