Invest Smart: Investing in equities smartly this festive season

Diwali, the festival of lights and auspicious beginnings, is not just a time for festivities but also an opportunity to evaluate and rejuvenate your financial portfolio. In a Diwali special episode of Invest Smart, financial expert, Raunak Onkar, shared valuable insights on how investors can navigate the market's recent volatility and make wise investment choices during this festive season.

Onkar emphasized the significance of understanding asset allocation, tailoring it to individual goals, and tolerating market volatility. For those considering equity investments, he stressed the importance of having a time horizon of more than five years to absorb short-term fluctuations effectively.

For existing investors planning to deploy funds during Diwali, Onkar recommended a diversified approach, incorporating a mix of large, mid, and small-cap stocks based on their risk tolerance.

Whether investing through lump sum or SIP (Systematic Investment Plan), the key lies in aligning the investment horizon with personal financial goals. Addressing first-time investors, Onkar highlighted the need for education and diversification. He advised beginners to seek guidance from advisors, understand the volatility associated with equity investments, and avoid impulsive decisions based on market rumours or social media influence.

Regarding gold investments, Onkar mentioned the Sovereign Gold Bond as a viable option, providing a secure and interest-bearing alternative to physical gold.

He emphasized the importance of viewing gold as a long-term asset class rather than succumbing to short-term market trends. As Diwali approaches, Onkar's insights serve as a guiding light for investors, illuminating the path toward a well-balanced and prosperous investment portfolio.

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