Equinox: The importance of balance

3 min read

March 21 is the Equinox, one of two days in the year when day and night are of equal duration i.e. 12 hours each. It is a day that symbolises balance. What better time to apply this balance in our lives and finances?

Balance in our finances

Diversification

A diversified investment portfolio is the one where investments are spread across multiple asset classes based on the risk profile, and investment goals and horizons of the investor. This reduces the risk, so that if one asset class is under-performing, investments in other assets can protect the investor.

Portfolio Rebalancing

It is important to review your investment portfolio on a regular basis to check whether it is in alignment with your goals and if not, it should be rebalanced. This rebalancing depends on the factors given below:

Life Stage: The portfolio should reflect your life stage, e.g. if you are planning to get married in a few years, your portfolio should have investments to fund your wedding and honeymoon.

If you are approaching retirement, you can look at consolidating assets and paying off loans.

Financial Goals: If you are investing for specific goals, it is essential to review whether your investments are going to meet those goals in the stipulated time, and shift to asset classes with lower/higher risks and returns as required.

Changing Conditions: Changes in the market conditions, rules and regulations, interest rates etc. also affect the performance of the portfolio. A regular rebalancing exercise helps manage such changes.

There are other aspects to portfolio rebalancing as well. For assistance in rebalancing your portfolio, contact your RM (Relationship Manager) on 022 4440 0000 from your registered mobile number.

Staying balanced during volatile market conditions

Equity markets often undergo periods of volatility and it is natural to panic or worry when markets decline. However, we must remember that staying calm and balanced in a bear market is better than worrying and making decisions in a hurry.

Balance in health

It is important to have a healthy body and mind, which can be achieved through healthy eating, exercising and resting.

Balance in work and life

Work-life balance has been a buzzword for the last decade or so, but it is important to realise that there is no single formula that can apply to all of us. We must find a balance that works uniquely for each of us where both professional and personal lives sustain.