Equities are a risky asset class.
Equity investments are made on a Medium-Term Outlook basis.
Medium term investments are investments at attractive relative valuations with favorable outlook for next 6-12 months. The investment case for these needs to be reviewed on a monthly basis for next 6 month period. Hence more careful monitoring is required than strategic investments. Such investments are suitable for shorter term investment goals but may be used for longer term goals like retirement planning as well, with more careful monitoring.
Sector Focus: Blue-Chips
We will focus on blue-chip household names which all investors are familiar with. They have a well-established track-record, strong management team, demonstrated competitive advantages and dominant market positions, which are likely to sustain into the medium-term to long-term. Equities are a growth investment. Market rewards companies that demonstrate growth in earnings and dividends.
We screen the universe of Blue-Chip equities for strong companies that have attractive growth-adjusted valuations. We only look at companies that pay dividends, with the exception of Alphabet [parent of Google].
Details about these companies can be found on their corporate website investor relations section. Please refer their annual reports and Equity prospectus.
Below is our current list of moderate risk companies & ETFs, for Balanced Investors:
These stocks are riskier than conservative stocks. This is evident in their historical volatility levels. Therefore the timing of the purchase is more critical than that of conservative equities. Generally, buying on dips for fundamentally sound companies works, provided there is no major negative news on the name. Macro-economic factors play on short-term price trends and create dislocations which can be profited from.
Remember, you can never perfectly time the market. You may see lower prices than where you bought. If you did your homework correctly, and the securities you hold will very likely generate strong and growing cash-flows in the future, your investment will perform.