A Balanced Portfolio Is Like A Balanced Diet!
It is important to have a balanced diet to remain healthy. Similarly, investing our hard-earned money requires us to adopt a balanced approach involving a goal-based investment strategy and following an asset allocation process. In other words, while eating healthy food ensures good physical health, investing wisely goes a long way in ensuring good financial health. In fact, different food items provide some interesting investment lessons for investors. To understand more about these lessons, let’s take “Thali” as an example as it is made up of different dishes.
Initial servings- A traditional thali meal begins with papad, raita, aachar and these are supposed to be eaten at different stages of our meal. If you get impatient and eat them in large quantities, it would usually result in not having enough appetite for main course and that would mean missing out on some of the delicacies. Similarly, while investing, don’t spend too much time and efforts on investment options straightaway without ascertaining which asset class to invest as it could either make your portfolio very aggressive or very conservative. Both these can be detrimental to your ability to create wealth in the long run.
This story is from the December 24, 2017 edition of Dalal Street Investment Journal.
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This story is from the December 24, 2017 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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