To risk or not To risk.

As we know about the major influx of retail investors into the market. Then comes the question of where and when to invest. it is a well-known fact that it is almost impossible to time the market.

Many newbies take the safe and easy Blue chip (large-cap) route. most of the time it is the best option for steady growth. The issue with that is the Given companies are already grown to such a huge market cap that they will now grow at a slow pace. So to tackle that many move on to the next option which is mid-caps or even small-caps.

This comes with its own set of advantages and disadvantages. primarily the Growth opportunity is immense but also comes with the sizable risk. so this has to be dealt with very cautiously and in regard to the risk appetite of your own. There is a saying that level of risk = level of returns. Riskier assets reward you with higher returns, though not all the time. A desire for higher returns leads us to underestimate the risk aspects of an asset. We are looking for maximum returns with respect to a certain level of risk.

A wise investor is he who has understood the targets, risks, sentimentality, and volatility of his portfolio. The goal of an asset allocation strategy is to maximize your returns while minimizing risk.