Liquidity has been quite strong for the year 2020, and the trend could well remain relevant in 2021 as well, but stock picking would be key for wealth creation, Harsha Upadhyaya, President & CIO – Equity, Kotak Mahindra Asset Management Company said in the D-Street Talk podcast with Moneycontrol.
Upadhyaya highlights a 3-point checklist on how to pick stocks in the year 2021. The first factor to analyse is to make prudent asset allocation. Please don’t chase any asset class which has given great returns in the past.
One should weigh the fundamentals as well as valuations. The second point which investors should focus on is discipline.
And, lastly, there should be a long-term focus of investors because in the short term, the markets could be volatile, suggests Upadhyaya. One of the ways to create wealth is by participating via mutual funds.
Mutual Funds offer that kind of diversification along with long term focus, says Upadhyaya.
(Please tune into the podcast for more)
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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