Investors are mostly very busy calculating their returns and are focused on capital earned from their investments in the market
While investing in market for longer time horizons, investors sometimes tend to take higher risks and end up losing money that they even started with or the principal amount invested.
Investors are mostly very busy calculating their returns and are focused on capital earned from their investments in the market, but often forget that preserving the initial capital is equally important.
People mostly realise the importance of capital preservation only in the times of serious downturns or when there are sharp falls in the benchmark indices and stocks.
"Investing in market is not about hitting the jackpot everytime, but about remain standing after down cycles so that you can continue to be a long-term investor," said Udayan Mukherjee, Consulting Editor of CNBC TV18.
In this latest episode of Stock Market Classroom with Udayan Mukherjee, he explains the concept of capital preservation and tells you how you can position your portfolio to preserve capital or principal.Watch the accompanying video...