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Don't want to put foot in my mouth again but SIP or lump sum, investing in a costly asset class won't get you value: S Naren

The article discusses insights from S. Naren, CIO of ICICI Prudential AMC, on investment strategies, particularly focusing on the pitfalls of lump sum investments in costly asset classes. Naren emphasizes that investors often make the mistake of investing large sums at market peaks, which can lead to significant losses if the market declines. He advocates for a more cautious approach, suggesting that investors should consider Systematic Investment Plans (SIPs) to mitigate risk by spreading out investments over time. This method helps in averaging the cost of investment and reduces the impact of market volatility. Naren also touches upon the importance of understanding one's risk appetite and the need for a balanced portfolio that aligns with long-term financial goals rather than reacting to short-term market movements. He warns against the common investor behavior of chasing high returns without considering the associated risks, which often leads to suboptimal investment decisions.

Read the Full MSN Article at:
[ https://www.msn.com/en-in/lifestyle/style/don-t-want-to-put-foot-in-my-mouth-again-but-sip-or-lump-sum-investing-in-a-costly-asset-class-won-t-get-you-value-s-naren/ar-AA1yNwAP ]