Every major correction in the stock market throws up opportunities for investors. BSE benchmark Sensex is down 3 per cent from its all-time high of 40,312, scaled on June 4, 2019, while BSE Midcap and Smallcap indices are down up to 30 per cent from their respective high points hit in January, 2018.
More than 85 per cent of stocks on the National Stock Exchange (NSE) have eroded investors’ wealth since January 2018.
This year, the market is trading widely polarised: the best performer of the Nifty500 index, Aavas Financiers, is up 74 per cent year to date, while the worst performer, Reliance CommunicationsNSE -3.45 %, is down 90 per cent.
“If you have to invest the corpus for the near term (say, three years), then the asset allocation can be 65 per cent in debt, 30 per cent in equities, 5 per cent in gold. But if the investment is for the long term (over 3 years), then the asset mix can be 60 per cent in equities and 40 per cent in debt,” said Jharna Agarwal, Head of Products, Anand Rathi.
Be it equity, debt, real estate and commodities, asset classes go through their own return cycles and bull or bear phases. That is wh ..
Meanwhile, the younger one is, the better placed she is to go for a risky bet. “A young investor with no financial responsibilities, no debt and low on capital can pour 70-80 per cent of the corpus in equities (smallcaps and midcaps), 10-20 per cent in gold and the remaining in debt instruments,” says Anshul Saigal, Portfolio Manager & Head- PMS, Kotak Mahindra AMC.
Besides age, it also depends on other factors such as financial status, leverage and time horizon of investment, he sa ..
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