In April-May 2017, Mint surveyed 19 financial advisers to know some of the biggest mistakes investors make. You can read about them here and here.
Over the next few weeks, we will talk to more advisers about these mistakes (read more here: www.livemint.com/investor-mistakes). This week, we talk to Valmiki Khatri, partner, Krushna Finserv LLP.
No asset allocation
Financial wisdom tells us that if we have a long-term goal, we need to have equity investments in our portfolios. And yes, we need to have an appropriate amount of debt instruments as well. But Khatri says that many clients who come to him for the first time, have a lot of fixed deposits with them and little or no equity exposure.
“Recently, someone in his late 50s walked into our office. He wanted to save for his retirement and do a systematic investment plan of Rs25,000 a month. When we looked at his existing portfolio, we saw that he held Rs1 crore in fixed deposits and they were not of much use to grow wealth,” he said. “In their zeal to be very conservative, many clients now realize that they have not been able to grow any wealth.”
