@Krishna19 let me tell you on outset, fear is good. The thing you know kills not the one you dont know. Basically confidence/overconfidence kills not the doubt. When I was learning to drive I was scared but chance of collission was low as I used to drive slow.
So be fearful and focus on diversification and asset allocation. I had fears so I increased my cash/bonds to 50% of my portfolio. I have 20+ stocks. I continue to compare earnings growth with valuations. So I will not buy anything where PEG seems above 2x. PEG is PE multiplied by growth. So in case expected growth is 20% for next 2-3 years then I dont pay more than 40PE.
This is generic gyaan, but it is all situation/personal. My higher cash levels reflect my personal situation also. If I have job or secured about job then my cash levels might have been only 20-30%.
If you are young and energetic you can be slightly bold, keeping in mind your dependence on money and your loved one’s dependence on you. Please balance.
Please note that I am not a financial advisor. Please consult your advisor for close and in-depth consultation.
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