Portfolio in Balance –Life in Balance, with SAMCO Risk Adviser achieve the right balance in portfolio
Successful Investing or Trading is an act of balancing the contrasting human emotions of fear, loss and anxiety on the negative side and prosperity, patience and confidence on the positive side.
It is not a case that people can’t manage emotions, in fact they can and are even fully aware of its importance. Still people can’t, and automatically revert to the negative side of emotions – fear, loss and anxiety. Why? This is because their Investing or Trading portfolios are not balanced.
The number 1 reason why people can’t control their emotions is because of imbalance or extremeness in their portfolio holding whether in trading or investment. When emotions are out of control, rationality is tossed out of our mind and this very fact has made countless people bleed on the street, it is the mother of all errors in the financial world. So, how to bring back that rationality or the balance? SAMCO Risk Adviser is the solution.
Why SAMCO Risk Adviser?
Far too many people have ruined their entire financial health, whether he being the mighty Harshad Mehta who had extremely concentrated portfolio or the Hunt brothers in 1980’s who betted every penny on Gold and became bankrupt, because they lost balance in portfolio, they lost balance in life. Those who have managed to follow the most important principle of life – “Life is in Balance”have become the richest persons on this planet eg. Warren Buffet. Samco Risk Adviser helps one establish the necessary “Balance in Portfolio”.
What do we mean by balanced portfolio?
For an Investor it means asset allocation or the portfolio mix should neither be over diversified eg. Shares of companies running into pages nor be highly concentrated i.e. too much overweight on few shares or for that matter overweight or underweight in any one sector. Ideally, the funds should be invested equally in 10 to 15 stocks within well diversified sectors to create a necessary balance.
For a Trader it means the open position should be well spread over different sectors, different markets and different stocks such that they are manageable meaningfully rather than taking concentrated bets on very few securities.The whole purpose of balanced or appropriate diversification is that if one or two stocks do not perform, others can, so at least the results albeit may be mediocre, but nonetheless are balanced.
At one extreme– people take highly concentrated bets and therefore are always in the state of anxiety, impatience with fear of loss disturbing their mind thus impairing their unemotional unbiased decision making ability.
At other extreme– people diversify too much, portfolios running double digit pages which makes one careless orconcern less which impairs their motivation or inclination to take timely decisions. Both the extremes are dangerous in financial world causing ill health physically mentally and financially. But by bringing together the two extremes, a balanced can be achieved to enjoy true fruits of financial health.
What is SAMCO Risk Adviser?
Samco Risk Adviser after scanning all the securities in the client demat account, impartially displays a true graphical picture of asset allocation, sectoral allocation and % components of each stocks in the portfolio.
Samco Risk Adviser also intelligently classifies the stock into AAA or AA or A or BBB or BB or B or CCC or CC or Penny category assessing purely on the quality of business of the company as scanned tested by applying principles of successful investors of our times.SAMCO team has rated majority of NSE listed stocks. For Detailed understanding of stock ratings refer our SAMCO Stock Rating blog.
Samco Risk Adviser acts as a friend, philosopher and guide to portray a honest picture of risk and its degrees of concentration or dispersion so that our clients can correct the imbalances, if any, in the portfolio, so that they can always think patiently and confidently for the prosperity in financial market and take correct decisions without unnecessarily giving thought energy to fear, loss and anxiety. We believe a balanced portfolio or appropriate asset allocation will bring in necessary unbiased, unemotional decision making ability for creating a joyful and prosperous experience in financial world, SAMCO Risk Adviser will help achieve that state of mind “Stithpragya – A Balance in Life and Balance in Portfolio”. Welcome to SAMCO world!!