Why downside matters and some basic arithmetic

Discussion in 'Must-Read Interviews, Articles & News Items' started by Vidhi Khanna, Apr 15, 2015.

  1. Vidhi Khanna

    Vidhi Khanna Active Member Staff Member

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    The most important thing about investment returns is that they are multiplicative and not additive

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    At present, I would be circumspect about piling on to small- and mid-cap scrips which are in a grip of momentum, and sectors such as fast-moving consumer goods ( the Indian consumption story) or defence-related stocks (on the back of Make in India/defence offsets). And if the future turns out anything less than perfect, investors could see big declines in portfolio values in overhyped stocks and sectors.

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    https://www.livemint.com/Money/DIyXPTM5KdaagdXJqkTbQJ/Why-downside-matters-and-some-basic-arithmetic.html
     
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