Investing in 2010 will lean more towards conservation of capital than seeking benchmark returns
When wealth managers in India talk about asset allocation, they invariably suggest sticking to equities and real estate. Other assets like commodities, fixed income and alternative investments such as art are discussed, but in no way rival shares in their appeal. Even for many above the age of 60, wealth managers are keen to have them invest in equities, provided they are well taken care of by their family and have the required risk appetite.
“People have understood the importance of conservation of capital the hard way. After the crash of 2008, investors who were diversified in fixed deposit or even post-office schemes, were amongst the least-hurt investors,” says Vicky Mehta, senior analyst at Morningstar India.
(This story appears in the 22 January, 2010 issue of Forbes India. To visit our Archives, click here.)