Asset Management Strategy
“Only those who dare to fail greatly can ever achieve greatly“.
There are many different options of investment and every option comes with its own risk and rewards. Investment in equity has higher risk along with high wealth appreciation, whereas investment in debt provided fixed returns with no risk, but returns are modest.
Common investment strategy:
Investment in debt with assured return will not cover the rate of inflation, making you investment plan useless. Currently, country is advancing with GDP growth rate of 7-8 percent annually. Common Inflation rate observed in India is 8 percent. Smart investor would take strategy to plan investment returns around 15 percent (GDP growth + inflation rate). This advises you to invest in shares and equities, taking care of risk aversion
Manage your assets:
It is very good investment strategy is to begin with proper asset allocation. This involves spreading your investment in different plans with different conditions. So, In future all slices of your wealth will react in different way as per the different market conditions reducing your portfolio volatility. Here your diversifying your assets in different classes, will provide wealth appreciation in many different ways.