Are you a risk averse investor?
Well who likes to lose his hard earn money in market downtrend.
But downtrends are integral part of stock market and despite all these downtrends market returns has beaten all other fixed return financial instruments by handsome margin on any 5 year rolling return basis. When it comes to investments the biggest risk in life is not to take risk at all. So, the need of the hour is not to reduce risk to 0 but to manage it to such a level that it does not becomes a speed breaker in the way of your wealth creation Journey.
The portfolio is different from our super safe portfolio which requires review after every 2 weeks and generates much higher returns. I repeat the portfolio is not completely risk free but the risk is well managed without compromising with returns with the help of data science technique and is well below most other equity based financial instruments. Having said that, fixed deposit can be preferred when you need the money within 6 months of investment date. All the chosen stocks are of high quality and least impacted with global market fluctuations. They have solid fundamentals however most of them are not undervalued but fairly valued so one need to review the portfolio once a year. The article is written for your information purpose only and should not be taken as investment advice. Consult your financial advisor before making any investment decision.