A investor called me & wanted to switch from his advisor to me as he was unhappy with the performance of the investments with his current advisor (1/6)
Next thing i do is ask him to forward me the portfolio. As i start looking at the portfolio, i realise he has only been investing for the last 8 month. Over that, the schemes looked okay to me, infact in the 8 months there was out performance to top it up (2/6)
Spent half an hour educating him that he had some irrational expectations and what was that realistic expectation to have and that he should continue with his current advisor (3/6)
Basic yet very important suggestions,
- Dont invest in equity with less than 3-5 years of view at the least
- Equity is not FD to give you the same returns each year, it will be volatile
- Have fair expectations depending on the kind of investing you are doing (4/6)
- Dont invest in equity with less than 3-5 years of view at the least
- Equity is not FD to give you the same returns each year, it will be volatile
- Have fair expectations depending on the kind of investing you are doing (4/6)
- Large Cap - may be 11-12%, Midcap may be 14-15% and small cap may be 16-18%
- The lower you go on the market cap, the more time you will have to give to your investments (5/6)
- The lower you go on the market cap, the more time you will have to give to your investments (5/6)
If you invest at expensive market valuations, you will have to give your investment even more time
- Dont invest in anything you dont understand (6/6)
- Dont invest in anything you dont understand (6/6)
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