A new investor recently met me and asked, "How much returns he will get if he invests a certain amount of money in mutual funds".

I told him it depends on him, not me. And he was quite amused as he thought I should know because I am the person who will suggest to him the right investment products which can yield good returns.

I explained to him that the investment world is dynamic and things change from time to time. Sometimes, there is euphoria in the marketplace, and yet there are times when everything seems to be going down. If you follow asset allocation, and stay disciplined in your investment journey you can expect a better return. However, if you get excited or panic with every news (good or bad), it could affect the portfolio negatively. The right product does matter but it is the investor behavior that is the key to investment returns.

Finally, I told him,

“Mileage depends on the driver, not just the car. The smoother you drive, the higher the mileage would be."

A new investor recently met me and asked, "how much returns he will get if he invests a certain amount of money in mutual funds". I told him it depends on him, not me. And he was quite amused as he thought I should know because I am the person who will suggest to him the right investment products which can yield good returns. I explained to him that the investment world is dynamic and things change from time to time. Sometimes, there is euphoria in the marketplace, and yet there are times when everything seems to be going down. If you follow asset allocation, and stay disciplined in your investment journey you can expect a better return. However, if you get excited or panic with every news (good or bad), it could affect the portfolio negatively. The right product does matter but it is the investor behavior that is the key to investment returns. Finally, I told him, “Mileage depends on the driver, not just the car. The smoother you drive, the higher the mileage would be."

         8 is here after 8 years . First time in history, RBI hiked Interest Rates when CPI is below repo rates. This shows that RBI will keep interest rate higher for a longer period than we expect. Inflation is very sticky so it makes RBI's (SKD and team) job tough.Rates will move up and remain high for next 2 years. It's a great opportunity to grab as rates (Above inflation) are 2% so we believe one should focus on fixed Income funds.

    Invest /park your money for good rates. It will give you peace of mind as there's no locking period and no volatality.