"Asset Allocation 2.0"
Detail π§΅
Definition: 'Asset allocation is the process of investing across diversified 'Asset Classes'.
#investing #wealthcreation
1/20
ππ
Detail π§΅
Definition: 'Asset allocation is the process of investing across diversified 'Asset Classes'.
#investing #wealthcreation
1/20
ππ
2/
Don't care whats your age is - 'if you have missed creating wealth at early age, no regret.'
I started understating Asset Allocation, Wealth Creation & Investing in late 30s.. .
In-fact started planning & investment journey much later, I mean few years back only...
Don't care whats your age is - 'if you have missed creating wealth at early age, no regret.'
I started understating Asset Allocation, Wealth Creation & Investing in late 30s.. .
In-fact started planning & investment journey much later, I mean few years back only...
3/
Before you get into 'Planning & Investment' - few basics you have to accomplish:
βΆ Pre close all investments linked with Insurance
β· Buy enough of medical insurance outside office
βΈ Buy a Term Insurance, min 1 Crore
Lets Begin πΊππ
Before you get into 'Planning & Investment' - few basics you have to accomplish:
βΆ Pre close all investments linked with Insurance
β· Buy enough of medical insurance outside office
βΈ Buy a Term Insurance, min 1 Crore
Lets Begin πΊππ
4/
Types of 'Asset Classes'
β΅ Real Estate - Site, Flat, Farm Land & Comm
βΆ Gold & Silver - Physical
β· Equity - MFs, Stocks
βΈ Debt - Gilt, Short Term, Income, Maturity & Liquid
βΉ PF/VPF/ NPS
βΊ Cash - FDs & Liquid Funds
β» Start-ups
βΌ Cryptocurrency & Derivatives..
π
Types of 'Asset Classes'
β΅ Real Estate - Site, Flat, Farm Land & Comm
βΆ Gold & Silver - Physical
β· Equity - MFs, Stocks
βΈ Debt - Gilt, Short Term, Income, Maturity & Liquid
βΉ PF/VPF/ NPS
βΊ Cash - FDs & Liquid Funds
β» Start-ups
βΌ Cryptocurrency & Derivatives..
π
5/ RE - the most non standardized & illiquid asset class.
Returns 6-8% if you are lucky.. .
Hasslesπ
1.Mafia
2.Cheating
3.Bribing
4.Headaches - paying taxes, maintenance, encroachment, searching tenants & resale.
I wish to go with a Flat to stay & 2-3 acres of farmland...
Returns 6-8% if you are lucky.. .
Hasslesπ
1.Mafia
2.Cheating
3.Bribing
4.Headaches - paying taxes, maintenance, encroachment, searching tenants & resale.
I wish to go with a Flat to stay & 2-3 acres of farmland...
6/ Gold & Silver
Decent percentage in Gold & Silver is must, most investors prefer paper gold & silver - MF, Sovereign Bonds etc.
I wish to go with Physical Gold & Silver - it serve my 2 purposes:
βΆ Investment in precious metals
β· Keep my Wife & Daughter Happy!!
Decent percentage in Gold & Silver is must, most investors prefer paper gold & silver - MF, Sovereign Bonds etc.
I wish to go with Physical Gold & Silver - it serve my 2 purposes:
βΆ Investment in precious metals
β· Keep my Wife & Daughter Happy!!
7/ Equity.. .
We all are aware of a crude rule: when it comes to percentage of Equity Allocation= (100 - Age).
For me it suggests more than 50% to be invested in Equities.
Equity Investment Progressionπ
MFs
β¬
Direct Stocks
Few Hybrid & Flexicap MFs & a Model Equity Portfolioπ
We all are aware of a crude rule: when it comes to percentage of Equity Allocation= (100 - Age).
For me it suggests more than 50% to be invested in Equities.
Equity Investment Progressionπ
MFs
β¬
Direct Stocks
Few Hybrid & Flexicap MFs & a Model Equity Portfolioπ
8/ Debt
Types of Debt Funds:
Liquid
Money Market
Dynamic Bond
Corporate Bond
Gilt
Credit Risk
Low, Medium & Long Duration
Ultra Short
Overnight etc.
Since I have sizable PF/VPF - I have not invested in any debt instruments.
More on Debt Investmentπ
groww.in
Types of Debt Funds:
Liquid
Money Market
Dynamic Bond
Corporate Bond
Gilt
Credit Risk
Low, Medium & Long Duration
Ultra Short
Overnight etc.
Since I have sizable PF/VPF - I have not invested in any debt instruments.
More on Debt Investmentπ
groww.in
9/ PF, VPF & NPS
A must asset class, what should be the percentage allocation, I will little later.
PF & VPF - we all are aware of it.
NPS - National Pension Scheme is a social security initiative by the Central Government. Please read details hereπ
cleartax.in
A must asset class, what should be the percentage allocation, I will little later.
PF & VPF - we all are aware of it.
NPS - National Pension Scheme is a social security initiative by the Central Government. Please read details hereπ
cleartax.in
10/ Cash
One more must asset class - required for 'Emergency Fund'
Where I should keep Cash? Definitely not below the bed unless its a black money.
Keep it in FDs, RDs, Saving a/c and Liquid Funds. Ensure you have access to it in 'No Time'
One more must asset class - required for 'Emergency Fund'
Where I should keep Cash? Definitely not below the bed unless its a black money.
Keep it in FDs, RDs, Saving a/c and Liquid Funds. Ensure you have access to it in 'No Time'
11/ Start-ups
There r around 7K plus start-ups in India, $ 2 B Invested and whooping $ 25 B Follow ons.
Now u decide, u want to start a "Start-up" or invest in "Start-up"π
Its a must try for those who hav already achieved Financial Freedom
Details hereπ
angel.co
There r around 7K plus start-ups in India, $ 2 B Invested and whooping $ 25 B Follow ons.
Now u decide, u want to start a "Start-up" or invest in "Start-up"π
Its a must try for those who hav already achieved Financial Freedom
Details hereπ
angel.co
12/ Cryptocurrency & Derivatives
Crypto - is the most talked about investment among the millennials. I dont mind allocating 2-5% if Indian Govt make it Legit Investment.
Derivatives - is a quick money maker or loser, I never made money here.
Crypto - is the most talked about investment among the millennials. I dont mind allocating 2-5% if Indian Govt make it Legit Investment.
Derivatives - is a quick money maker or loser, I never made money here.
13/ Model 'Asset Allocation Class'π
14/ What are the factors decide 'Asset Allocation'?
1. Age
2. Time Horizon
3. Financial Goals
4. Commitments & Dependents
5. Risk profile - Conservative, Income, Balanced, Growth & Aggressive
1. Age
2. Time Horizon
3. Financial Goals
4. Commitments & Dependents
5. Risk profile - Conservative, Income, Balanced, Growth & Aggressive
15/ I found this interesting 'Asset Allocation' by ET Money:
16/ 4 out of last 8 years, Equity has given the "Best Returns"π
17/ Why diversified required? Look at Gold & Equity - their returns are always contrastπ
18/ Few Asset Class Performance since 2006π
19/ If you are not sure on "Diversified Asset Class" investment, you can as well start with Balanced Funds - based on market condition they change the Equity - Debt allocation percentage.
Here is one exampleπ
Here is one exampleπ
20/ When is your Asset Allocation is effective?
1. Improve Risk Reward Equation
2. Works best with assets having Weak Performance Co-relation
*End*
Please RT to reach-out individuals who are in the process of wealth creation.
π€
1. Improve Risk Reward Equation
2. Works best with assets having Weak Performance Co-relation
*End*
Please RT to reach-out individuals who are in the process of wealth creation.
π€
Loading suggestions...