Q.1) Which is the most recommended asset class for 2012? Why?
Ans.) Equity. Under the pressure of internal and external factors, the market is trading at one year forward PE of about 13, which is an attractive level.
Q.2) What is the suggested asset allocation for retail investors?
Ans.) Equity allocation should be 100 minus your current age, provided investing horizon is over 5 years. Debt allocation should be equal to your current age.
Q.3) What should be the investment strategy?
Ans.) Do not make any emotional investment decisions. Know the risk involved in any instrument that you invest in.
below is the link of article published in economic times wealth on 2nd January'2012.
http://epaper.timesofindia.com/Default/Client.asp?skin=pastissues2&enter=LowLevel
Ans.) Equity. Under the pressure of internal and external factors, the market is trading at one year forward PE of about 13, which is an attractive level.
Q.2) What is the suggested asset allocation for retail investors?
Ans.) Equity allocation should be 100 minus your current age, provided investing horizon is over 5 years. Debt allocation should be equal to your current age.
Q.3) What should be the investment strategy?
Ans.) Do not make any emotional investment decisions. Know the risk involved in any instrument that you invest in.
below is the link of article published in economic times wealth on 2nd January'2012.
http://epaper.timesofindia.com/Default/Client.asp?skin=pastissues2&enter=LowLevel
