In continuation to my previous mail subjected “Points to Ponder “ I would like to add few more insights to keep in mind while investing.

I once again reiterate to follow Asset Allocation.

Do not see past returns and invest In equity, or for that matter any asset class. The reason being when valuations are high, perceived risk is low and when valuations are low, perceived risk is high.

As mentioned earlier, in the current environment going forward one must expect moderate returns from equity markets. The recent 3–4-year returns is not the best benchmark for expected future returns. I always emphasize that the long term returns will be more or less equals nominal growth of the economy. Whatever above it consider it as a bonus.

Those who are investing since last 3-4 years have seen a one side rally in the markets with minor blips. Do not expect it as its normal functioning. There are periods when markets correct, moves sideways. The best investment strategy is to stick to ups and downs by following asset allocation and stay the course.

Advises Caution:

Now a days lot of SMS and calls are floating around recommending stocks with a pre-determined targets. Do not entertain such calls.

New Fund Offers with various names are floating by mutual fund AMC’s. Do not invest in them randomly. Your existing investments will take care of the so called opportunities.

Lastly i request to update your Aadhaar Number through the links which i sent earlier. Ignore if already done. Let me know in case of any trouble. Karvy site is having some trouble. Do it after couple of days.

“Even the intelligent investor is likely to need considerable willpower to keep from following the CROWD”-Benjamin Graham