How To Determine Investment Horizons

How To Determine Investment Horizons

I am a registered customer of Dalal Street. I wanted to know what does short term, long term and medium term mean and how to make considerable profits from the suggestions that you give. What should the trading volume be, as in, the amount to be invested by a retail investor?

Of course, it is not possible to buy all the suggested stocks in large volumes at one go and the portfolio has to be built over a period of time. What do you suggest I should be doing to diversify my portfolio? Should I invest lesser amounts in each of the stocks, or simply go for one or two stocks suggested and invest heavily in them?

- Sagar Mohapatra

Reply -

As far as the meaning of the terms short, medium or long term are concerned, these are relative terms. There are varied interpretations of these terms from various quarters and think tanks on investing. You would have to define these time periods for yourself, depending on your investment priorities and comfort of liquidity.

With regard to building your portfolio, you would have to consider proper asset allocation, with only a certain percentage of your investible funds being allocated to equity. As for our recommendations, we suggest that you prudently allocate your money into the principal recommendation sections that we cover (Choice Scrip and Low Priced Scrip) in the magazine.

‘Interest’ing Report

It has always been a pleasure to receive my copy of Dalal Street Investment Journal, and for sure this feeling has not changed a bit over the last 10 years that I have been subscribing to the magazine. It might sound a bit dramatic, but I have always waited eagerly for the magazine as it gives plenty of insights not only on the stock markets but also on the economy. My favourite columns are Choice Scrip, Hot Chips, Analysis and of course, the Cover Story.

In the last issue, the special report you have carried on interest rates (Will It? Will It Not?) was really an eye opener. The way you have elaborated the scenarios in two different ways is really helpful for a layman and small investor like myself.

I hope that by your insightful research Dalal Street Journal always remains on the top like it has been for the last 26 years. Keep up the good work.

- Chittaranjan Jamkhedkar, Akola