SUBSCRIBE NEWSLETTER
  • Change Language
  • English
  • Hindi
  • Marathi
  • Gujarati
  • Punjabi
  • Tamil
  • Telugu
  • Bengali
  • Tutorials Prudent Investing - I

    Prudent Investing - I

    Mirae Asset Knowledge Academy Jun 25, 2015

    We are happy to introduce our new series on Prudent Investing. The Series will cover articles on various qualities of prudent investors and the Prudent Ways of Investing.

    Prudent Investing

    If you show good and careful judgment when handling all types of matters, you can be described as prudent. Similarly, a wise and well-thought-through decision or action can be called prudent.

    It is also very important for an investor be very prudent when it comes to investing, as being prudent is one the most important factor which will reap investor good returns.

     

    3 Important qualities of prudent Investors

     

    1. They follow Asset Allocation Strategies

    Investors, who follow asset allocation based on their risk profile, and investment time horizon, tend to successful investors. Historical Survey has shown that more than 90% of the investment returns over the long term are driven by asset allocation rather than timing the market or stock selection.

    2. The Ability to Differentiate Rewards from Risks

    Prudent/successful investors know how to differentiate risk from reward. When risk outweighs returns, they reject that investment decision.

    The most important element is margin of safety, which they evaluate before making a decision.  

    3. They are disciplined

    This is a must for an investor to be successful, one cannot succeed without discipline. Once invested, stay committed to achieve your goal and do not get tempted by market fluctuations. Starting SIP investments based on goals and Portfolio Rebalancing are an ideal example for discipline.

    Watch out this space for more, next we will cover the how Asset Allocation is a Prudent Way of Investing.

     

    MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY     

     

    Have a query or a doubt?
    Need a clarification or more information on an issue?
    Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

    Click to clap
    Disclaimer: Cafemutual is an industry platform of mutual fund professionals. Our visitors are requested to maintain the decorum of the platform when expressing their thoughts and commenting on articles. Viewers are advised to refrain from making defamatory allegations against individuals. Those making abusive language or defamatory allegations will be blocked from accessing the web site.
    0 Comment
    Be the first to comment.
    Login or Sign up to post comments.
    More than 2,07,000 of your industry peers are staying on top of their game by receiving daily tips, ideas and articles on growth strategies. Join them and stay updated by subscribing to Cafemutual newsletters.

    Fill in the below details or write to newsdesk@cafemutual.com and subscribe to Cafemutual Newsletter now.
    Cafemutual is an independent media platform and focuses on providing knowledge and information for the benefit of finance professionals. We do not promote any particular brand or asset category.