Priya Patel
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TLDR:
- Asset allocation is crucial for investment success
- Diversification is key to managing risk
Mukesh Kochar of AUM Capital emphasizes the importance of prudent asset allocation to achieve investment goals. He warns against overallocation or under-allocation, stressing the need for reasonable diversification in a portfolio. Kochar advises investors to avoid putting all their eggs in one basket by investing in a single financial instrument or similar instruments.
Kochar suggests that new-age investors should allocate only long-term funds to the equity market and maintain proper asset allocation with goal-based investments. He highlights the significance of investing regularly, utilizing market fluctuations for investment opportunities, and avoiding the noise of penny stocks. Kochar also addresses common mistakes that can derail financial objectives, such as lack of diversification and inadequate knowledge of market conditions.
In terms of staying current on financial policies and tax regulations, Kochar recommends reading financial newspapers and consulting financial advisors. He stresses the importance of focusing on asset allocation as the basis for achieving desired investment outcomes, with earnings being the outcome of proper asset allocation. Kochar envisions a future where the wealth management industry combines human expertise with digital capabilities to cater to the needs of young investors.
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