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Showing posts with the label #wealthmanagment

If your Equity Portfolio is not globally diversified, you're taking undue risk which may not payoff

Points to ponder while taking investing in equity: 1. Do you travel to foreign countries like the US, UK, Japan, Switzerland, etc.? 2. Do you send your kids abroad for education? Shouldn't you balance your equity exposure to Indian and Foreign stocks/ Mutual Funds/ ETFs/ FoFs?  Reasons for the globally diversified equity portfolio: 1. Reduces country-specific risk Country specific risk includes negative events such as  war,  drought,  political turmoil, etc. 2. Winners keep rotating Winners keep rotating frequently Predicting them in advance is impossible Reduce the risk of our investors losing out when the Indian stock market underperforms   3. Reducing Portfolio Volatility All stock markets do not always move at the same pace or same direction   Investing across countries helps to reduce the volatility of the portfolio Lower fluctuations in the portfolio which also helps in better good night's sleep 4. Wider choice Several world-class companies do no...