WealthBasket

Everybody says to invest for the long term - but 𝐰𝐡𝐚𝐭 𝐢𝐬 𝐥𝐨𝐧𝐠 𝐭𝐞𝐫𝐦? What is the minimum holding period which qualifies as long-term? Long enough so that the asset stops giving negative returns on a rolling basis. We used this logic to compute minimum holding periods for asset classes like equity, gold and debt in India. Here’s what you should know 👇 [1] 𝐌𝐢𝐧𝐢𝐦𝐮𝐦 𝐇𝐨𝐥𝐝𝐢𝐧𝐠 𝐏𝐞𝐫𝐢𝐨𝐝 𝐚𝐧𝐝 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐲 𝐂𝐨𝐬𝐭 If one asset has higher minimum holding period than the other, then there’s higher opportunity cost associated with it. This is because the investor is required to remain invested for a longer time, potentially missing out on other investment opportunities. [2] 𝐇𝐢𝐠𝐡𝐞𝐫 𝐄𝐱𝐩𝐞𝐜𝐭𝐞𝐝 𝐑𝐞𝐭𝐮𝐫𝐧𝐬 𝐟𝐨𝐫 𝐋𝐨𝐧𝐠𝐞𝐫 𝐇𝐨𝐥𝐝𝐢𝐧𝐠 𝐏𝐞𝐫𝐢𝐨𝐝𝐬: Assets with a longer minimum holding period should ideally compensate investors with higher expected returns to justify the higher opportunity cost. [3] 𝐓𝐚𝐤𝐢𝐧𝐠 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐃𝐞𝐜𝐢𝐬𝐢𝐨𝐧𝐬 𝐁𝐚𝐬𝐞𝐝 𝐨𝐧 𝐇𝐨𝐥𝐝𝐢𝐧𝐠 𝐏𝐞𝐫𝐢𝐨𝐝𝐬: If two assets have similar return profiles but different minimum holding periods, the asset with the shorter holding period is preferred. This allows investors to achieve similar returns with a lower opportunity cost. We use these principles to build WealthBaskets with precision based on our factor-based models. Trying to achieve similar/higher returns with a lower/same opportunity cost budget. Disclaimer: share.market/terms-condition… #sharemarket #wealthbasket #india #investing #equity

Congratulations all !! #nifty50 hits 20,000 today! #sharemarket #stockmarkets #India

The #G20, the maestro of global economic developments, has handed its baton to #India, marking the first time a South Asian nation takes the lead on this prestigious stage. #G20BharatSummit #G20India2023