Wanderlust Sajid

Stock market overall by nature itself is buoyant and fickle. Volatility is inherent in it and geopolitical factors spike the movements of it in all times. Indian central elections 2024 naturally thus becomes one of the factor to future read the market.  Every elections introduce uncertainly in the market. This time too the volatility has shot up in last one month. However, the markets are currently pricing in the continuation of the government and ongoing reforms. Nevertheless, elections result sometimes, as seems in the past, can go opposite of expectation. Any deviation in these expectations will result in higher volatility, mostly taking the market downwards. I would here thus try to analyse what the perceived uncertainty that the market might face in near term and what could possibly be the outcome in medium to long term.  Global Factors : 2024 is not just an election year, it is perhaps the election year. Globally, more voters than ever in history are going to the poll...

Inflation is a phenomenon where the general price level of goods and services in an economy increases over time. It erodes the purchasing power of your money and reduces the value of your savings. Therefore, beating inflation is an important financial goal. Here are some ways to beat inflation: Invest in assets that appreciate in value: Historically, assets such as stocks, real estate, and commodities have appreciated in value over time, often at a rate that outpaces inflation. By investing in these assets, you can potentially grow your wealth and beat inflation. Invest in inflation-protected securities: Inflation-protected securities, such as Treasury Inflation-Protected Securities (TIPS), are bonds that are indexed to inflation. They provide a guaranteed return that is adjusted for inflation, ensuring that your purchasing power remains relatively stable. Increase your income: One of the most effective ways to beat inflation is to increase your income. This can be achieved through a v...

There is no one-size-fits-all answer to this question as the best asset allocation depends on an individual's financial goals, risk tolerance, and investment horizon. However, a commonly recommended strategy is to diversify investments across different asset classes, such as stocks, bonds, gold and real estate, to spread risk and improve the potential for returns. Additionally, it's recommended to regularly review and adjust the asset allocation in light of changing personal circumstances or market conditions. For individuals who have a long-term investment horizon and a moderate to high risk tolerance, a balanced asset allocation that includes a mix of stocks and bonds may be appropriate. A general guideline for this type of allocation is to allocate 60-80% of the portfolio to stocks and 20-40% to bonds. This approach can provide the potential for higher returns over the long-term while also providing some stability and protection against market fluctuations. For individuals w...

Asset allocation is the process of dividing an investment portfolio among different asset categories such as stocks, bonds, and cash. The main goal of asset allocation is to balance risk and reward by investing in a mix of assets that aligns with an investor's financial goals, risk tolerance, and time horizon. There are several different types of asset allocation, each with its own unique characteristics and There are several different types of asset allocation, each with its own unique characteristics and objectives. Here are the main types of asset allocation: Strategic Asset Allocation: This is a long-term approach that involves determining an appropriate mix of assets based on an individual's goals, risk tolerance, and time horizon. The strategic asset allocation will remain relatively constant over time, with only minor adjustments made as needed. This approach is best for investors who have a long-term horizon and are comfortable with a moderate level of risk. Tactical As...

Asset allocation is the process of dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash. The main goal of asset allocation is to balance risk and reward by considering an individual's investment goals, risk tolerance, and time horizon. The first step in asset allocation is to determine your investment goals. Are you saving for retirement, a down payment on a house, or a child's education? Once you have a clear idea of your investment goals, you can then determine your risk tolerance. Risk tolerance refers to your willingness to accept the possibility of losing some or all of your investment in exchange for the potential of higher returns. Next, you need to consider your time horizon. How long do you plan to hold your investments? If you have a long-term investment horizon, you may be able to take on more risk than someone with a shorter time horizon. Once you have determined your investment goals, risk tolerance, and time horizon, y...

Benjamin Franklin was the founding father of the United States.  There is a famous quote by him which  says, "An investment in Knowledge pays the best Interest". Benjamin Franklin was a polymath - an individual whose knowledge spans a substantial number of subjects. But, if we speak of investments in just financial terms, the subjectivity of knowledge and it's importance is profound.     I have come across many investors, who have lost far too much money due to investments in products that they don't understand. The first principle of a sound investment is to have a full understanding of the product and whether you are comfortable investing into it or not.  Yes, investors should take professional help. But still; they should never blindly invest anywhere and everywhere. It is ultimately their money and so they must understand in detail before making investment decisions. It is better to ignore a complicated product with a higher possible retu...