In the latest episode of Invest Smart, we turned our focus to first-time mutual fund investors with financial expert Rushabh Desai, Founder, Rupee With Rushabh Investment Services. As markets continue their upward trajectory, the discussion with the host Avni Raja focused on simplifying investment strategies and managing expectations.
Rushabh emphasised the importance of simplicity for beginners, recommending pure index funds such as large-cap or Nifty 500 funds for a smooth entry into the market. He cautioned against jumping into volatile products and suggested balanced advantage funds for those averse to risk.
Regarding investment styles, Rushabh highlighted the cyclical nature of growth and value strategies. He advised maintaining a balanced portfolio to mitigate risks associated with each style, ensuring steady performance regardless of market fluctuations.
Addressing asset allocation, Rushabh stressed the significance of aligning investments with individual goals, time horizons, and risk tolerance. He suggested a strategic approach, with a tilt towards large-cap or flexi-cap funds given their reasonable valuations.
Furthermore, he discussed the importance of managing return expectations, urging investors to remain cautious amidst market euphoria. He reminded viewers that while historical data may indicate long-term returns, short to medium-term expectations should be moderate.
Responding to concerns about missing out on market gains, Rushabh advocated for patience, noting that opportunities to enter the market will arise periodically. He encouraged viewers to focus on disciplined investing through SIPs and cautioned against impulsive lump-sum investments.
In conclusion, Rushabh emphasised the significance of continuing SIPs for consistent investment growth while exercising caution with lump-sum investments, especially in volatile segments. His advice aimed to empower first-time investors with the knowledge and discipline necessary for long-term financial success.
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