Special Report

Starter funds for a hot market

In our next Money Hangout session, we tell you how first-time investors and conservative investors can invest in today's galloping market

Starter funds for a hot market

"Well begun, is half done" is what they say. So it's pretty important that you do have a good beginning. First experiences matter - your first car, your first home, even your first kiss; the quality of these affects your subsequent attitude to them. If your first investment in a mutual fund goes wrong, this can cause you to make poor decisions for your entire investing life. So how do you stop this from happening?

If you are a seasoned investor, you might not think yourself vulnerable to this risk. However, a loss is a loss, no matter what is your level of experience. If you haven't fully participated in the market rally until now, a correction will seem all the more difficult to bear. So how do you join in, without taking the risk of jumping in at the very peak?

Your experience will be partly determined by overall market conditions. At present, the Sensex is within striking distance of its all-time high. A powerful stream of investor money is chasing stocks while earnings still lag behind. This greatly increases the risk of seeing low returns or even losses on your funds in the coming months and years, even though such fluctuations will get smoothed out in the long run.

Much of the answer to these problems lies in fund selection and asset allocation. In our next Hangout, we tell you how you can employ these strategies to reduce your risks. You cannot protect yourself from accidents but using helmets and seat belts can save your life.

Starter funds for a hot market
Date: Friday, April 07, 2017
Time: 12:30 PM - 1:00 PM

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