Investors must stick to their asset allocation
Live MintIn April-May 2017, Mint carried out a survey of 19 financial advisers, on the biggest mistakes that investors make. Then, in 2008, when equity markets fell sharply and the net asset values of such funds fell too, investors pulled out,” Chadha said. Chadha’s advice is: if equity markets are overheated, that’s when you should cut your equity exposure and shift partly to fixed income, even though debt funds give much lower returns than equity investments, when markets are booming. Self-help websites: Chadha says that in rising markets, investors tend to ignore their financial goals and dismiss fixed income mutual funds as ‘too conservative’ and start paying heed to ‘tips’. We let investors continue in them as we continue to persuade them to put incremental money in mutual funds,” said Chadha, who believes that some savings are better than no savings, or say, better than buying real estate.
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