SBI Fund Guru | Pankaj Ladda | Financial illiteracy is a huge challenge
You need a browser with JavaScript!
In this episode, Pankaj Ladda from Kota speaks about Mutual Fund which has emerged as the best investment option if the investment is done based on knowledge and after a need-based analysis. Investment in stocks is different as it is a direct investment in contrast to Mutual Fund, which is a consolidation of some stocks and the return based on the performance of all stocks together hence minimizing losses.
Even today, only 5% people invest in Mutual Funds and 95% people remain out of the radar and out of this 5% only 1% understand the products. Financial illiteracy is prevalent in the country hence Financial Literacy Program was started with the vision to provide literacy to 25,000 people by 2020.
For any investment, allocation plays a vital role hence each investor needs to provide inputs related to job profile, the source of income, current investment, risk appetite, any ongoing loans, etc., based on which risk is assessed. After actual risk assessment asset allocation is done and product selection. Pankaj Ladda explicitly says, “there are only two emotions that prevail in the market, i.e., hope and fear and the trick is we hope when we should fear and fear when we should hope.” Buying and selling should be done devoid of these emotions and investor should establish buying and selling rules derived from historical research. Financial literacy is imperative to teach next generation that financial planning and systematic, regular investment in a disciplined fashion is important as there will not be any fixed deposit or real estate market giving high returns like it was in the past.
To know more, Click on Picture.
Vishal Gupta,
Radio Dwarka,
India’s First Online Community Radio,
Friday, October 27, 2017