Coca-Cola denies US consumer group’s claim that its colouring ingredient causes cancer; yet the company says it will modify its drinks in India like it has in California
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Investments in 2012
Times of volatility call for a reassessment of financial goals rather than a blind elimination of risk. Here’s our advice for investing in the new year
Investors commonly adopt a risk-averse financial strategy when the markets are volatile and unpredictable, devoting larger funds to safe investments like bank fixed deposits.
In September 2011, the mutual fund industry reportedly lost Rs.54,000 crore in assets, according to the Association of Mutual Funds of India. The preference for debt over equity is not illogical, as banks are offering attractive interest rates that are unlikely to rise much further. However, if your reaction to a financial crisis does have long-term implications, avoiding the market completely may not be a good option either.
Pankaj Mathpal, CEO, Optima Investors, says, ‘Contrary to the popular view that the stock market should be avoided when it drops, you may need to increase your exposure to the market, as the value of your equity portfolio would have eroded.’
After any major fluctuation in the market, financial planners recommend that you review your financial portfolio to check if it is in alignment with your goals and tolerance for risk. In this report, we discuss the importance of rebalancing your portfolio and why equity is a necessary component of any portfolio, and also tell you which fixed income investment offers the best returns.
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