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With markets at an all-time high, should you wait before investing in stocks? – Mint

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NEW DELHI :

I am 22 and starting my investment journey. My goal is to save as much as possible in the next seven to eight years before big expenses start. I am planning to invest around 40,000 per month from my salary and increase it in subsequent years. But as the markets are at an all-time high, should I wait for a year or two to invest directly in stocks?

—Aman Garg

 

Congratulations on starting your investment journey, the earlier you start investing, the more it works in your favour. Your thoughts on making the most of your savings in the coming years are very encouraging. A monthly investment of 40,000 with annual increase of 5% can help you build a corpus of 67 lakh at the age of 30, if we assume 10% return per annum. This accumulated amount can prove very useful for different objectives at that age or you may continue to focus on wealth creation in future as well.

While the stock market is at an all-time high, doing regular monthly investments and following in a staggered manner to invest in the stock market can help you build a long-term portfolio. This systematic investment approach will help you average out the investment cost across market cycles and this strategy always works in the interest of investors. At the same time, you also develop a disciplined approach towards investing when you follow a systematic investment strategy. Hence, you need not bother much about the stock market being at an all-time high to start with your investment. You can invest in direct equities, but investing through mutual funds may work better for you as these funds are managed by professional fund managers and it also offers diversification across companies and sectors. You can consider setting up Systematic Investment Plans (SIPs) in the following equity diversified funds to begin with:

Nifty Index Fund (20%)

Parag Parikh Flexicap Fund (18%)

UTI Flexicap Fund (18%)

Mirae Asset Large Cap Fund (18%)

Canara Robeco Emerging Equities Fund (16%)

DSP Mid Cap / Axis Mid Cap (10%)

Harshad Chetanwala, is founder MyWealthGrowth.com. For queries and comments, please mail mintmoney@livemint.com

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NBA star Steph Curry talks book clubs and investment in reading subscription service Literati – Fortune

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Why I Invested: NBA star Steph Curry talks book clubs and investment in reading subscription service Literati | Fortune

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Here's why investors like Warren Buffett don't like gold as an investment – CNBC

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In this article

Gold is one of the largest financial assets in the world with an average daily trading volume of $183 billion, and its value has seen explosive growth in recent years.

At the start of 2000, gold was priced at just $460 per ounce when adjusted for inflation. By August 2021, that number had ballooned to roughly $1,815 per ounce.

But not all investors are in love with gold. Warren Buffett has spoken out numerous times on his doubts, calling it an asset with “no utility.”

“It doesn’t produce anything and that’s why from a long-term perspective, it’s a hard asset to invest in,” Odyssey Capital Advisors chief investment officer Jason Snipe said. “It’s prudent portfolio management to have maybe a small allocation there but this is not an asset that you want to be heavily entrenched into if you’re looking for long-term yield.”

Since 2011, the S&P 500 has returned more than 16% on an annualized basis. The annualized return for the 10-year Treasury note sat at just over 2% in that time period. Gold, meanwhile, has fallen slightly over the past 10 years.

“Early on, you see strong performance, strong return or yield from commodities such as gold. Generally, as we move into a different cycle, gold is not as great a performer as we move into a normalized environment,” Snipe said.

Whether gold is an effective hedge against market volatility is also widely debated among experts.

“Gold is not necessarily a perfect hedge against inflation but it can be a strategic hedge against inflation,” according to Suki Cooper, executive director of precious metals research at Standard Chartered Bank.

“Various studies have shown us that if gold is held for 12 to 18 months before inflation takes higher and then it’s held for an additional 12 to 18 months while inflation moves higher, it can be a good inflation hedge,” Cooper said. “But if it’s just bought for a short period, let’s say a month, it may not prove to be an effective inflation hedge.”

Watch the video to find out more about how gold performs as an investment.

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Ontario supports investment of $31.5M in Wellington, Perth county businesses – CTV News London

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London, Ont. –

Ontario supports $31.5 million surge within the Southwestern Ontario economy with $2.6 million being invested in Wellington County through the Regional Development Program.

The investment by Wellington County manufacturers, which will build on domestic manufacturing is being supported by the Ontario government, will help to create 71 jobs and retain 150 jobs.

“Through the Regional Development Program, our government is making targeted investments in local manufacturers to help them create good, local jobs,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade in a statement.

“These projects are making a significant impact in communities and economies across the Wellington County region and Southwestern Ontario by helping to secure the private-sector investment that will support strong regional growth.”

The investments are as follows:

  • Weberlane Manufacturing is investing $4.8 million to build a new 115,000 square foot manufacturing facility in Listowel.
  • Nieuwland Feed & Supply is investing $16.2 million to consolidate its production facilities as well as build a second feed mill on the property.
  • Bold Canine is investing $6.5 million to expand and renovate its facility, purchase equipment, and invest in research and development.
  • Wellington Perforated Sheet and Plate is investing $3.9 million to develop new products, and produce more steel parts in-house.

The Regional Development Program for Eastern and Southwestern Ontario was launched by the government in November of 2019.

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