This Diwali, dispel 3 evils and refresh your portfolio
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Over the last 3-5 years, financial markets have delivered impressive returns, rewarding investors handsomely. Even portfolios that underperformed compared to benchmarks like the Sensex or Nifty likely still outpaced other asset classes. Indian stock markets posted strong gains, with Nifty 50 and Sensex delivering 11-12% annualized returns over 5 years and 15-16% over 3 years. Mid-cap and small-cap indices outperformed, offering 12-20% returns. Real estate showed moderate growth, with residential properties yielding 3-6% and commercial real estate 8-12%. Gold surged, providing 8-12% returns, while debt instruments and fixed deposits offered lower but stable returns of 4-7%. Equities clearly outperformed. But as we celebrate these gains, Diwali 2024 brings with it an important reminder: the need to re-evaluate and refresh our investment portfolios. No matter how successful the past has been, the spirit of Diwali encourages us to let go of t...