The two recent developments that have hogged the mindspace and headlines are the market movement and tug of war over Ulips. To some, stocks may seem like no news and Ulips may seem like a oneoff case, but the fact is that the past couple of months have been buzzing with developments spanning all asset classes, be it mutual funds, insurance or loans. With some of these changes coming into effect from the new financial year and others still shaping up, your investments are in for a drastic transformation. As the cliche goes, change is the new constant (in the short to medium term, at least).
What is not constant, though, is the way investors react to such developments. While change may make some of us press the panic button, others may wait and watch or not bother at all. How would you react? What is the right strategy to follow in such a situation? To find out, you first need to know the type of investor you are-you need to know your financial fingerprint. It may be very different from your neighbour's because the investment appetite, risk tolerance and goals vary for each person. Our cover story will help you identify your financial personality so that you are able to make the best investment decisions this year, and beyond.
Staying with change, one very important development scheduled for next year is the Direct Taxes Code. We start a new series from this issue to tell you how the expected changes are likely to impact your finances (see Tax Watch, page 87).
Coming back to stocks, as companies emerge from the slowdown, there is pressure to show good results. To do this, many firms resort to 'creative accounting', which may not be illegal but is definitely meant to deceive investors. Read our story on page 60 before you believe the corporate results announced this quarter.
The bottom line is that to be a smart investor, first you have to be an aware investor.
Rakesh Rai, Deputy Editor
