CEO Speak

The festive season brings in a lot of sprucing up that we do at our homes. From decluttering and decorating your homes, it is also a good time to take stock and of your investments and reviewing your portfolio while starting a new year.

Markets have been choppy and there is a raging debate going on about the economic condition of the country and the several measures which are being taken to give it the requisite boost. While the uncertainties may take some time to settle down, for a retail investor it is extremely important that he remains focused on his financial goals. Hence, this festive season, we recommend that you take stock of your investments. Asses the asset classes that you are invested in currently and the original goals basis which you had made these investments, whether it was bank deposits, real estate , gold or mutual funds.

The way to re-balance one’s portfolio is to check the current corpus which has been created, assess the financial goals and check dispassionately the asset classes and their performances. You may want to continue with some, you may want to shift some money from one asset class to another and you may want to also plan a new investment strategy for fresh investable surplus.

Mutual funds continue to be an attractive tool for wealth creation and means to achieve your financial goals. SIP (Systematic Investment Plans) is a great way to keep saving regularly and invest in the equity markets and take advantage of rupee cost averaging when the market is going through cycles. So any fresh investment that one wishes to start as a regular mode of saving and creating wealth for a specific financial goal can be done through the SIP mode into an equity mutual fund. The time horizon must be long term when it comes to reaping the benefits of the equity market.

Another aspect of rebalancing one’s portfolio is to closely look at the debt component of your portfolio and understand the benefits of investing into debt mutual funds. It is important to understand that debt mutual funds are not averse to risk. Debt funds are dependent on the quality of corporate papers that the fund has invested into and also give liquidity and tax efficiency to an investor with the time horizon that suits them for their financial need. Hence, investors need to look at their current debt exposure and the instruments in which they are invested in and explore debt mutual funds also to their benefit.

We at L&T Mutual Fund strongly recommend that this festive season you invest some time in reading about the benefits of mutual funds or have a detailed conversation with your financial advisor to take stock and review your complete investment portfolio. Here’s wishing you a very Happy Festive Season on behalf of the entire team of L&T Mutual Fund.

Disclaimer – This document is for general information only and does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this information. Investments in mutual funds and secondary markets inherently involve risks and recipient should consult their legal, tax and financial advisors before investing.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.