Year endings are riddled with a peculiar paradox. They may reek of despair over a perturbed past, yet are redolent with hope for the future. They may be saddled with banalities springing from hindsight, yet shimmer with possibilities stemming from foresight. As we straddle the divide between 2011 and 2012, the financial world is beginning to sniff out these contrasts.
The investors are rumbling with resentment over a year that has landed them losses, but are calmly cautious about the profits they may make in the coming year. The players in the investing world-stock brokers, fund managers, realty developers, insurers-and the industry are grim about stunted growth, but are sanguine about stability in the domestic market.
Which is the most recommended asset class for 2012? Why?
Debt. As long as the debt market is giving double-digit returns, equity markets will not perform. Go for long-term debt products as the high rates being offered now won't last long.
What is the suggested asset allocation for retail investors?
Equity: 30%; debt: 50%; commodities: 15%; money market: 5%
What should be the investment strategy?
Equity allocation should be made in a staggered manner. Buy long duration bonds, such as NHAI, PFC.
The investors are rumbling with resentment over a year that has landed them losses, but are calmly cautious about the profits they may make in the coming year. The players in the investing world-stock brokers, fund managers, realty developers, insurers-and the industry are grim about stunted growth, but are sanguine about stability in the domestic market.
Which is the most recommended asset class for 2012? Why?
Debt. As long as the debt market is giving double-digit returns, equity markets will not perform. Go for long-term debt products as the high rates being offered now won't last long.
What is the suggested asset allocation for retail investors?
Equity: 30%; debt: 50%; commodities: 15%; money market: 5%
What should be the investment strategy?
Equity allocation should be made in a staggered manner. Buy long duration bonds, such as NHAI, PFC.
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