INVESTING IS ONLY FOR EXPERTS

The stock markets are too evolved and interlinked these days. It is near impossible for every individual to know everything about investing or how economic, geopolitical and other factors would impact the stock markets. For instance, the Indian markets find investors from evolved economies who may exit their investments in India for reasons that may have nothing to do with India, but a policy or economic condition in their respective countries.

For the ‘less expert’ investor, investing is not just about buying and selling but also about knowing when to hold and for how long. As seen earlier, there are financial instruments to address every need and risk profile. Investing in a broad index fund or ETF (exchange traded fund) doesn’t require expertise; ditto for long-term diversified MFs. Funds can be less risky than buying shares in a single company for if one of the investments loses money, it can be balanced out by other investments in the fund. ■