#capitalvia

Unless there is a big international crisis like North Korea, the profit booking session have seen, expected to more correction level, and also noticed the volatility in the world market scenario. So, in this condition, our portfolio should be properly allocated, protection against risk, and timely revise it.

Stay invested: This is not a big issue to book the folio or reshuffle the folio, but investor should be aware of their allocation, and stay invested in equity part to analyzing the individual equity by their weight, if the equity is overbought zone and also have potential to gain more, So, investor should have to put that under his observation or he can hedge his investments also.

Moved out from unperformed equity: If an investor observed some of his equity holding part are not performing well and still be in undervaluation, Then exit from this type of investments and that can be replaced by potential equity.

Proper allocation of Bond: In this condition, Bonds rate and potential to gain in interest rate may lure to invest in major portion, but that can be an illusion. If the crisis will reshuffle, an investor can lose earning potential. Instead to betting on interest rate returns, folio should be constructed with reward ratio. Instead of that, an investor can manage cash holding for interest gain, that can also meet the immediate expenditure of the investor.  

Gold investments: In current situation gold rate were pooled back and shown the potential to gain. So, some part of investment with appetite risk should be invested in gold or gold related instruments.

Now the investor is mature, they invest after the analysing the economic policy market positioning and growth prospects. Has many options to invest else direct or indirect. If they are thinking to invest in the capital market in indirect way , can investing through SIP (systematic investment plan) in mutual fund, where can interact with the fund managers and people involved in mutual fund industry, that opportunity can also a tool for analysing the economy and market, also an investor can get idea that whereas should be invested in current phase. SIP is a good way to invest in all situations but now investor expectations are too high & at least conservative are taking the position of a moderate investor.

For direct investments, an investor should be financial market educate also have a sound knowledge and term of the financial market and market effecting policies and factors. So direct investment in the capital market to deal with equity shares for the prospectus of capital appreciation and dividend yield.

North Korea has been in a race of becoming military superpower like US since the beginning. Although, its intention was never to have a war with US but to safe guard its own people from any potential harm from other countries. North Korea commenced its missile development program using scud-B from Soviet Union and launch pad from Egypt in the year 1976-81. Since then it has tested scud-b and scud-c, ballistic missile, long range missile, intercontinental ballistic missile and recently a nuclear bomb test of the Hydrogen bomb.

Strong sanctions have been imposed on North Korea since its first nuclear test in 2006. In the year 2006 it demanded that North Korea ceases its nuclear testing program along with which some of the military and luxury goods supply was prohibited. As the program continued in the year 2009 some of the ships and cargo was destroyed on suspicion of a nuclear weapons program. In 2013 after the third nuclear test it was aimed to shut out of the international financial system and money transfer sanctions were imposed. In the year 2016 exports of Gold, Titanium and rare earth metals were curbed along with coal and iron ore which were purely for livelihood purpose. Recently for the latest nuclear (hydrogen bomb) test  it has prohibited increase in North Koreans is working in foreign countries.

These increase in sanctions have lead to a state who has no connection with the outer world and does not have sufficient resources to maintain the livelihood of its citizens. With more political and democratic pressure from within the country and lack of resources North Korea will capitulate to UN sanctions to sustain its economy.

Recently there has been no activity observed from the North Korea which is the proof of the burden of sanctions imposed on it. It might now shut down its antihuman nuclear test program and let the world live in peace.

After this verbal war settles, the world we see now is going to change forever. All the global economies will boom and there will be a new benchmark for humanity. The living standard of people all over the globe will improve and with the development in technology sector, it will become possible to make our planet more beautiful to live than ever.

In an individuals life, the Saving and investing are the most important parts seems as opposite but relevant to each other to grow the capital. It's about to the earnings of individuals on the monthly basis to deduct all his monthly general expenses to the limit up to 60% of the earning and 20% to manage life expectations and standard, remaining 20% should be investing for future earning and emergencies.

It could be careful consideration to making an investment plan to grow the wealth as much faster than saving. Also, maintaining some money in savings accounts and create a ready to use the reserve for emergencies like unexpected medical, earning loss etc.

A person should create general reserve form savings, in which some parts of the saving will be an add-on month basis for immediate expenditure, medical bills, earning loss etc. An individual can hedge their unexpected expenditure by the purchase of medical, health and other relevant insurance.

As soon as the possible investment will start at the early age of the individual, that can build a good corpus, when an individual wants to retire himself and future earnings will collect and reinvest thereafter.

Once the corpus has generated, an individual has more benefits to reinvestment and tax benefits. The risk-free investments, like Bank demand draft, post office deposit schemes, can get more interest on investment by citizenship basis, also get the tax rebate and low Tax rate.

If we take an example of X and Y, are a same age investor, X starts investments in the age of the 22nd year, by RS 1200 per year, and Y starts at the age of the 30th year by Rs.12000 per month, with a 7% risk-free rate of return. At the age of 60,  X gets a corpus of 22 lakh fifteen thousand and  get 12 lakh 12 thousand. The difference between the corpus is around 10 lakh, and investments difference is Rs 96000.