Prajna Capital - An Investment Guide

Some good options if you have a high-risk appetite Everybody should start their financial planning as early as possible in life. There are many facets of financial planning. These include inflow and outflow of money, planning for increase in income and expenditures, saving for future needs etc. Keeping track of inflows and outflows of money helps in maintaining financial discipline. People save a percentage of their inflows to cater their future needs - investments. There are many investment instruments available in the market and it's important for investors to understand the various offerings, requirements, and limitations of an instrument, before entering into it. Some of these investment instruments (equity or market based) offer much higher returns than traditional instruments. However, investing in these instruments is risky as they do not guarantee the principal amount. Since the future needs are also variable in nature (some known and others unknown), it is better to ...

KEYNES, the most talked-about economist in these days of bankruptcies and bail-outs, once said, “markets can remain irrational longer than you can remain solvent.” While this theory is applicable to both bears and bulls, the underlying message is undoubtedly clear that rational investors can succeed if they can keep irrationalities out. The broader investment decision of whether to invest in equities as an asset class at a given point in time should depend on the prevailing stock market activity. While I also agree with the learned view that a retail investor should not try to time the entry and exit in a particular stock, I strongly argue that every investor can time the market to enter/exit equity markets. Stock markets historically have peaked at a time when interest rates also peaked or tended to peak due to higher demand for market related credit fuelled by over confidence. There is an example of this not so “knowledgeable” investor friend who sold all his equity investments wh...