DON'T IGNORE INVESTING IN FIXED INCOME.
[ Courtesy: Dhirendra kumar in The Times of India dated 01st July, 2019 (Monday) ]. " Even the most diehard equity fans must ensure that at least some of their investments are in fixed income options ". I have often lamented Indian savers' excessive reliance on fixed income. Generations of savers have automatically turned to savings instruments such as PPF, bank deposits, post office deposits, etc., for their savings and investments must be invested in euqity or equity-backed mutual funds. Interestingly, it increasingly looks like that a certain proportion of younger savers have taken the equity mantra a little too seriously. Savers who start investing in equity funds and have a good experience tend to invest all their saving in equity funds. This is a mistake, as it goes against the concepts of asset allocation and asset re-balancing. These concepts may sound complex but can be understood easily in three steps. One: broadly, there are two types of financial investm...