The 10-year benchmark yield settled at 6.20% on 31st July • Metals and Mining, Soft commodities (Sugar) consolidated their leadership position for the third consecutive month • Indian markets are 104% of GDP - higher than the historical average 75% of GDP.
Some investors clearly understand the markets so well and ride all the waves and storms and come out winners. Perhaps the only way to understand this is ‘experience’. But what are the steps to gaining this experience. It is tough for a new investor in equities to understand shocking corrections. The article looks at how the cycle of knowledge and experience play out over time for investors.
A good Financial Plan looks at the investor’s current Financial Situation, Profiles him for the risk that he can tolerate and the Time Horizon of the proposed goals. Most good certified planners would prepare a sound long term holistic financial plan for you based on your risk profile, help you to define your financial goals and then do an asset allocation (with contingency plans built in) with you.
