You must have heard that you financial adviser always suggests you invest in equities for the long term. But one of the basic questions that you always wanted to know is that how long is long term. Well, for investors, ‘forever’ may not be possible. As they invest money in equities to make sure that they are able to achieve their goals. Let us suppose that you might be investing for a car or a house. That you want to buy in five years. Therefore, here it is significant to realize that profit-booking is an important part of the investment. Generally, there are various ways one can book profit. But for that, the advice varies from stock experts to financial advisers, as the two communities play different roles.
You will see that investment advisers feel. That holding on to the entire equity investment can turn out to be a loss-making proposition. They believe that staying in equities for a long term is the key to building wealth. However, this can not attain be if investors fail to book profits frequently. Consistent with the market consultants and investment advisers. Before you sell, you must always remember to see the value of the stock. A simple way to do this is to study the price-to-earnings ratio.
On the other hand, financial planners decide on investment. Trusted on what’s to be gain and once. They also take the risk appetite of the investor into account and, accordingly, allocate the money. As per them, profit-gaining can be done at several stages.
Suppose that the equity portfolio of investor is into large-cap, mid-cap and small-cap equally. So according to the expert’s profits can be ordered when the proportion of the portfolio changes. It should be to the original allocation.
Meet the financial planners of Money Classic Research. In order to obtain accurate share market tips to book profit.