PREDICTIONS ARE INJURIOUS TO WEALTH

WHENEVER SOME ONE ASK'S YOU

WHATS THE FUTURE OF THE ECONOMY WHICH ASSET WILL OUTPERFORM ?
OR
WHAT DO YOU THINK WHICH WILL PERFORM BETTER EQUITY, DEBT OR GOLD ?

YOUR ANSWER IS ONLY A PREDICTION 


NOW WEATHER YOUR PREDICTION WILL GO RIGHT OR WRONG WILL BE DECIDED BY THE ECONOMY ITSELF IN FUTURE. AND IF YOU ARE RIGHT WELL AND GOOD,
BUT WHAT IF YOU GO WRONG ?


AND WHAT IF YOU OR SOMEONE ELSE IS INVESTING ON THE BASIS OF YOUR PREDICTIONS  ?


HENCE I SAY THAT "PREDICTIONS ARE INJURIOUS TO WEALTH"


SO NOW THE QUESTION ARISES THAT HOW CAN ONE SAFEGUARD HIS INVESTMENTS  IN THIS DYNAMIC SITUATION ?

THE SIMPLE ANSWER TO THIS QUESTION IS YOU INVEST IN ALL THE ASSET CLASSES

AND THE BEST WAY TO DO THIS IS THROUGH MUTUAL FUNDS, WHAT YOU DO IS SELECT THREE TYPES OF MUTUAL FUNDS

1. EQUITY FUND
2. DEBT FUND
3. GOLD FUND

IN THE ABOVE GRAPH YOU CAN SEE RETURNS PROVIDED BY DIFFERENT ASSET CLASS
IN LAST 16YRS

1. GOLD INDEX     11.99% p.a
2. DEBT INDEX      10.74%p.a
3. EQUITY INDEX   9.01%p.a

AND LAST IS ASSET ALLOCATION INVESTOR 11.23%

ASSET ALLOCATION INVESTOR IS ONE WHO HAS INVESTED IN ALL THE THREE ASSET CLASSES 

IN THE ABOVE GRAPH YOU CAN SEE THAT EACH ASSET CLASS HAD ITS GROWTH PERIOD WERE IT HAD OUT PERFORMED OTHER CLASSES

1. FROM 2000-2004 DEBT FUNDS
2. FROM 2005-2007 EQUITY FUNDS
3. FROM 2008-2011 GOLD FUNDS
4. WHAT NEXT ?

WHICH SHOWS THAT ONE CAN NEVER PREDICT WHICH ASSET CLASS WILL PERFORM BETTER