Savvy Money: Winning investment strategy depends on you understanding each option

Savvy Money: Winning investment strategy depends on you understanding each option
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By Christina Harrison and Judy Howell
KyForward contributors

I’m really not a fan of pro sports. I would much rather watch college sports any day, but I do occasionally watch pro ball once the college games are over. And that brings me to an observation about Lebron James. Watching the Heat play the Celtics recently, it was obvious that Lebron would not be stopped. He was responsible for 45 of the 98 points (46 percent of the total production) scored by the Heat.

Watching Lebron that night reminded me of watching Jodie Meeks score 54 against Tennessee a couple of years ago. His teammates just knew their role was not to get in his way that night. They intuitively knew that. Knowing the role each player is expected to fulfill is often the key to having a winning team, just as knowing and understanding the role each of your investments play in your overall strategy is key to having a winning investment strategy.

I’m going to take a couple of weeks and look at available investment options. But before we look at those, I want to define some of these investment options. Remember, these are general statements that typically apply. There are exceptions to every rule!

Bonds – When you buy a bond, you are simply loaning an entity money, whether it is the U.S. government, local…………… continues on

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LIC has a conservative investment strategy, have invested in ONGC for long …
News from Economic Times:

Life Insurance Corporation is open to investing in companies with good governance practices and a good track record, says DK Mehrotra, who recently assumed charge as chairman of the insurance giant. In an interview to Shilpy Sinha, Mehrotra emphasises the need to design and innovate products to suit the demands of the younger generation. Edited excerpts:

Ulip sales have been falling in a volatile market. What will be your strategy this fiscal?

If you go back 4-5 years, everyone was riding the Ulip wave. It contributed 85% to our portfolio. When we saw the economic meltdown, we started shifting our focus. We were debating whether Ulip was the right product for the industry. In insurance we should always look at products that give us long-term income. We took a conscious decision to move towards conventional products. The process started three years back. We will not completely exit from the space. In 2011-12, things have reversed. Traditional is now 85% of our portfolio.

What should be the ideal mix?

It depends on the risk profile of the people who are buying insurance. An ideal mix would be 65% traditional and 35% Ulip. Last year, the market was volatile and products were taking…………… continues on Economic Times

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