When we come to Equity markets we have lot of questions, some of them are answered but some of them are not answered and above it there are questions which are better not to answer.
Questions like ---
Why Equity Markets, When we have safe guaranteed products like FD/NCD/PPF etc?
Why we cannot select good companies when it comes to investing?
Why Systematic investing scores over timing the market?
When we should invest and get out of the market, essentially related to timing the market?
What is Goal based financial planning?
What is Asset Allocation, Why it works and why we should move attention towards it?
Equity markets is the only Asset class which has given 17% CAGR over last 30 years, this includes all the negative returns during scams and all the bull market that we have witnessed over years. During bull phases, markets have given returns in excess of 100% and during bear phase it has given negative returns of 50%. But still the long term average returns is at 17% CAGR.
Now that is really wonderful, no other asset class has given so huge returns. That is the power of Equity. But we are very short sighted when it comes to Equity investing. We see the volatility but we dont see the outcomes out of this volatility. That is the human behaviour.
