INSUBCONTINENT EXCLUSIVE:
Equitieshave a proven track record of generating superior returnsin the long term.Diwali is the festival of lights and Goddess Lakshmi
The Samvat year (Hindu New Year) is a good time to chart financial plans and set the path to financial security
A host of investment avenues, ranging from equities to gold, can create wealth and achieve financial security for the future.Primary
MarketsInitial Public Offerings (IPOs) are good long-term investment avenues
The IPO market has come to life in the past few months, after a momentary lull, with a slew of offerings from the likes of SBI Cards,
Rossari Biotech, Mindspace Business Parks REIT, Happiest Minds Technologies, Chemcon Speciality Chemicals, Computer Age Management Services
and Mazagon Dock Shipbuilders
And with continuous corporate growth and economic expansion, may companies will tap the primary markets to raise funds and list their
short term economic and market fluctuations
They also have the the potential to outperform other asset classes over the longer-term horizon
Value investing can be a good beginning
Value investors are basically bargain hunters who search for undervalued stocks or stocks that haven't yet been discovered by other market
They invest in businesses rather than stocks per se
Warren Buffet and Rakesh Jhunjhunwala are prime examples of value investors.Investing in high-dividend stocks can also be a good investment
option, especially in times of high volatility
In the Indian context, some companies have a history of proving attractive dividends
And as high-dividend stocks are basically equities, the potential for capital appreciation still remains.Index FundsEquity investing may not
be every one's cup of tea, given the market fluctuations, real possibility of wealth erosion and limited knowledge about the markets
An index fund is a mutual fund that imitates the portfolio of an index
For example, a Nifty index fund would tracks the NSE Nifty index and its portfolio would consist of the 50 constituent stocks of the Nifty
The returns of an index fund would mimic that of the underlying index
Index funds thus provide diversification in asset allocation, minimizing the risks and making money in the long run.Corporate BondsCorporate
bonds are a good option for risk-averse investors who fixed return options and healthy returns in an environment of plummeting fixed deposit
Such bonds are issued by both, private and public companies
Investors need to opt for only well-established corporates that have a good credit rating and track record of honoring their financial
Some bonds may be listed on the stock exchanges, but this is not the norm.GoldThe yellow metal has been among the best performing asset this
year, providing returns of around 30 per cent
Gold is touted as a safe investment option as it usually does well in times of uncertainty
With the Covid19 pandemic shows no signs of abating and increasing geopolitical challenges in India's neighborhood and across the world,
gold is likely to continue its sheen for long
And gold is also a good hedge against inflation
In fact, the festival of Dhanteras is considered to be an auspicious occasion to purchase gold.To conclude, Samvat 2077 may be as good a
time as any other to start investing and make investments a way of life.
