Prajna Capital - An Investment Guide

With the stock market showing little sign of any serious recovery, and inflation high, some of you are likely to be considering investing in gold. If you are, you need to know the pros and cons. Experts differ widely on the matter. Some feel this is just not the right time to invest in gold, considering the commodity's price has risen sharply, and may soon do what the stock market did under similar circumstances --crash. The price of gold is already at its peak and even a gain of 5% at this level seems quite difficult. Investment is not advisable at this price. But there are others who feel just the opposite. This is the right time to get into gold as forecasts suggest that the price is set to touch Rs 15,000 or more. Wealth managers feel an investment portfolio with an allocation to gold improves the consistency of portfolio performance during both stable and unstable periods. It's also liquid in nature and can be easily converted into hard currency. Since gold is likely to do...

Still one can bet on global funds as a means of portfolio diversification. Coming after a week when financial giants have collapsed and the world looks on in confusion, it may seem strange to say that investors should still look towards investing in global funds. But financial advisors still believe that you should consider global funds as a means for portfolio diversification and gaining exposure to different asset classes, investment styles, sectors and so on. To make things easier, this article gives you the how and why of investing in global funds. MORE Diversification / OPPORTUNITIES Investors should view global funds as giving them the chance to participate in opportunities and themes that are not available in the country such as investing in gold mining or metal companies or those sectors which are highly regulated in India like oil and fertiliser and to benefit from the boom in these sectors. Global funds also help you make the most of the strengths and the growth characteristi...