A retail investor's equity exposure should be based on asset allocation,risk appetite and most importantly,on what stage of life he/she is in.those who do not understand equities should invest either via mutual funds or opt for portfolio management services,where professionals manage the portfolio and one simply monitors the investments.both new and existing investors should invest regularly in equities in small tranches rather than in lump sum..the investors should avoid pertaining to their equity participation,they should avoid any kind of leveraging or margin funding.if the markets correct and you cant top up your account,your investment can get sold off at the wrong point,resulting in losses. Investors should understand that any erosion in the value of their portfolios is only a notional loss. So,unless you are forced to exit equities at a loss,there are no losses,even if the markets correct. Let the return expectation be reasonable. DON'T CONSIDER THE EQUITIES AS A CASINO WHERE YOUR MONEY CAN DOUBLE OVERNIGHT.
I would invest in Infrastructure and capital goods sectors have to grow for indias GDP to be robust.Both these sectors have not done well in the past 12 -18 months.This is a contra bet but according to me investors should include these sectors with a long term view
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