Tag: Volatile

Investing in equities – Risk or a Reward

risky investments

Last week we discussed what risk is and the ways and means to manage those risks. A person in life primarily has three types of goals viz. short term goals, medium term goals and long term goals. And if a person intends to accomplish his long term goals; loss of purchasing power is his biggest risk. The best tool to combat this risk are “Equities”. When I often advise people to invest in equities for their long term goals; their sudden reaction is “Equities are risky investments and they do not give returns”. Today let’s understand the myths and realities about equity investing. Continue reading “Investing in equities – Risk or a Reward”

Have you managed your risk

Managed Risk

Whether it is investing, driving or walking down the street everyone exposes themselves to risk. At the outset, let us first understand what is risk in investing? We often hear people saying that you should not invest in XYZ, it is risky. To most of us, risk in investment is when market value goes down below the amount so invested. For instance, if Rs.1 Lac invested becomes Rs.98000, we presume it to be a risky investment. Continue reading “Have you managed your risk”