Mark Twain famously said, “October. This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August, and February.”
For those people who don’t understand the nuances of investing or simply don’t have the time to focus on their investing strategy, this may very well be true. However, most of us are always looking to stack the odds in our favour and generate robust returns through astute investing. The important thing to ponder upon is what you need to do to achieve this. Below are a few things that can be considered as good investing imperatives.
Assess general market conditions and estimate the growth trajectory of the equity market.
- Understand the themes or sectors that can potentially do well in the future
- Once the broader theme has been decided, you need to select stocks that are best positioned to benefit from it. This would involve in-depth research that would include industry research, company analysis, etc.
- Once the stocks have been identified you need to determine the best entry points in terms of price.
- Stock selection is only one part of good investing. The next part is holding on to your positions during market volatility and knowing when to rebalance your portfolio.
Clearly, following the above is not everyone’s cup of tea. It is a challenging task at which most investors falter. Even if you follow the above, there are various other hurdles that could come in your way and impact your investment journey. So, what is the alternative?
An ideal option would be to invest in ready made portfolios. The most common readymade portfolios are mutual funds. These are investment vehicles that are managed by expert fund managers who invest your money as per the investment mandate of the scheme. However, mutual funds schemes often don’t give you the kind of concentrated exposure you require. This means that they create ready made portfolios for the masses. However, if you are looking for ready made portfolios that are more customised in nature then you can consider investing in Wealthbaskets.
Reasons why you should invest in ready made portfolios like Wealthbaskets
First up, let us understand how a readymade portfolio like Wealthbaskets is structured. These are customised portfolios curated by expert Registered Investment Advisors (RIAs) to give you exposure to select themes, strategies, or sectors. For example, a Digital India readymade portfolio or wealthbasket will give you an opportunity to invest in companies that are leveraging innovative digital technology to disrupt the status quo and benefit from the government’s focus on creating a digital India. Readymade portfolios can add value to your investment portfolio in several ways:
- Selective investment exposure: Ready Made portfolios like Wealthbaskets comprise stocks of companies that adhere to a select theme or idea that can potentially meet your unique requirements. For example, a Technofunda Wealthbasket will select stocks that adhere to predetermined fundamental as well as technical parameters. So, if you are an investor who wants to invest in fundamentally strong stocks while ensuring that you are able to capture the ups and downs in the stock price then you don’t need to make the added effort of doing both fundamental and technical analysis. You can simply invest in a Technofunda Wealthbasket to get the desired exposure.
- Advised wealth: Good investment advice is either very hard to come by or it is simply very expensive to access. Readymade portfolios have changed the norm by ensuring that investors like you can have low-cost access to quality portfolios that are created by expert investment managers. The experts analyse the stocks and perform deep research to create diversified portfolios. This way you can take the advantage of expert advice and to make optimal investment decisions.
- No monitoring and Ease of rebalancing: With ready made portfolios like Wealthbaskets you don’t need to worry about monitoring your portfolio and rebalancing it in response to the changing market environment. The investment manager managing the readymade portfolio monitors the investments in the portfolio and rebalances when required. This way, you don’t need to worry about timing the market.
Ready Made portfolios are simply a transparent, low-cost, and hassle free way of investing in the market as per your specific requirements and choices. Explore some of the readymade portfolios available on this platform.
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