Asset Allocation
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Asset allocation strategy for middle class investors
Asset allocation plays a vital role in the overall returns generated by a portfolio of investments. It is my opinion that middle class investors should opt for mutual funds and ETFs over stocks and derivative instruments. Mutual Funds offer diversification of the portfolio and professional management of the portfolio which cannot be achieved otherwise without…
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How to choose Mutual Fund Schemes?
The first step in the Financial Planning process is to decide your goals and review the resources available to achieve the goals. It is also essential to take into consideration the investor’s age, income and risk appetite. Also a realistic expectation must be set with regards to the returns that are expected from the Investments.…
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Gold
Gold is the most popular commodity in India. It has been traditionally used by Indians as a measure and store of value. In fact India is the largest consumer and second largest importer of Gold in the world. I came across an article which stated that India has more Gold than the US Federal Reserve,…
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Alternate Investment Funds
Alternate Investment Funds are a special category of Funds under Securities and Exchange Board of India AIF Regulation Act. Such Funds have a large ticket size, usually one crore Indian Rupees. They have more risk associated with them as compared to stocks, bonds and mutual funds. Alternate Investments Funds include: Venture Capital Funds Venture Capital…
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Market Watch
Note: this article was written in 2021 and reflects the specific market conditions, valuations, and allocation recommendations of that moment (post-pandemic liquidity, then-current Sensex/Nifty PE levels). It’s kept here as a historical snapshot of our thinking at the time rather than current market commentary, and the specific numbers and allocation percentages below should not be…
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Index Funds in India
Considering that Stock Market Indices are methodically calculated to reflect the best in each category, the following index funds can be considered from a 5-10 years perspective. These funds are available with several Asset Management Companies in India. Sensex FundNifty 50 Index FundNifty Next 50 Index Fund The allocation to Index Funds, Exchange Traded Funds…
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The Four Levels in Investing.
All of us are aware about investments in shares and mutual funds. We have also heard about investments in Private Equity firms and Venture Capital Firms. This articles segregates the investments in the above four investment options and how they differ from each other. There are some other types of funds such as Hedge Funds,…
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Strategic and Tactical Asset Allocation.
Strategic Asset Allocation refers to allocation of funds in various asset classes based on Investor’s risk profile and financial goals. Tactical Asset Allocation refers to allocation of funds in as per the trend or anticipated price movement in an asset class. While investing according to Strategic Asset allocation strategy, one invests from a long term…
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Asset Allocation Strategy.
A question which most Investors think about is “What should be my asset allocation Strategy”?. It is generally believed that Equity exposure should decrease as age increases and vice versa. Some investors think that Equity and Equity based products are too risky and avoid them altogether. Equity is, however, an essential part of any good…