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ravi shankar asset allocation
The document discusses asset allocation strategies for conservative, moderate, and aggressive risk profiles. It defines asset allocation as dividing investments among asset classes like stocks, bonds, and cash. For conservative investors, it recommends a 20% equity/55% bond/25% cash allocation. For moderate, it suggests 65% equity/30% bonds/5% cash. And for aggressive, 85% equity/15% bonds. Across profiles, it provides example funds for large cap, mid cap, international, and bond components of a diversified portfolio. The key benefit of asset allocation is gaining exposure to rotating market leaders while cushioning against downturns in any single sector.
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ravi shankar asset allocation
- 1. ASSET ALLOCATOIN RAVISHANKAR On 15/10/2014 5/9/2015 1RAVI SHANKAR
- 2. Asset Allocation: A StrategicDivision of Assets Stocks Cash BondsAsset allocation does not assure a profit or protect against a loss. . 5/9/2015 2RAVI SHANKAR
- 3. Asset allocation isthe strategic process of dividing your investments among different asset classes, such as stocks, bonds and cash equivalents. Short- term Treasuries and Certificates of Deposit are typical cash equivalents. • Stocks, bonds and cash are the three basic building blocks of asset allocation. • A diversified long-term portfolio should include all three. 5/9/2015 3RAVI SHANKAR
- 4. Major Benefits ofAsset Allocation Gain exposure to rotating market leaders Potentially increase your returns 5/9/2015 4RAVI SHANKAR
- 5. Gain exposure torotating market leaders If your assets are divided among many different market sectors, you’ll benefit when one asset class does well. You’ll have a cushion against a downturn in any one specific market sector. 5/9/2015 5RAVI SHANKAR
- 6. Potentially increase yourreturns Many investors turn to fixed income for a reasonable level of return with less risk than stocks. By adding a moderate allocation of stocks to the portfolio. If you are willing to allocate a little more to stocks, you may be able to achieve an even greater return with little additional risk 5/9/2015 6RAVI SHANKAR
- 7. Risks of AssetAllocation General market risk (value of portfolios will fluctuate with market conditions) Asset allocation does not assure a profit or protect against a loss Performance is dependant on ability to select appropriate asset categories 5/9/2015 7RAVI SHANKAR
- 8. Conservative A conservativeportfolio is appropriate for an investor with a low risk tolerance and a time horizon from immediate to longer than 3 years. Conservative investors are not willing to accept periods of extreme market volatility 5/9/2015 8RAVI SHANKAR
- 9. Strategy 20% equity 1.) 10%Large-cap equity (Index) 2.) 05% Mid-Small-equity 3.) 05% Foreign equity 55% Bonds 25% Cash + Fd 5/9/2015 9RAVI SHANKAR
- 10. strategy DEBT 55%% GILT FUNDS 50% hybrid funds 20% LIQUID SCHEME 20% Cashmkt 25% ICICI Prudential Money Market Fund - Regular Plan 5/9/2015 10RAVI SHANKAR
- 11. MY suggestions • L&TGilt Fund - Investment Plan - Direct Plan • ICICI Prudential Long Term Gilt Fund - Regular Plan 11 % GILT FUND • ICICI Prudential Child Care Plan - Study Plan - Direct Plan20.70% • SBI Magnum Monthly Income Plan - Floater - Direct Plan 14% HYBRID debt- oriented conservative • Escorts Liquid Fund - Direct Plan • Birla Sun Life Floating Rate Fund - Short Term Plan - Direct Plan LIQUID SCHEME 5/9/2015 11RAVI SHANKAR
- 12. MY suggestions • Icicipru top 100 • Birla sun life top 100large cap • Principal Emerging Bluechip Fund Mid & small cap • Birla sun life International Equity Fund • JP Morgan JF Greater China Equity Off- shore Fund International 5/9/2015 12RAVI SHANKAR
- 13. Moderate Strategy A moderateportfolio is appropriate for an investor with a moderately high risk tolerance and a time horizon longer than 5 years. Moderate investors are willing to accept periods of moderate market volatility 65% equity 40% Large- cap equity 10% mid-cap equity 15% sectorial equity 30% Bonds 30% Intermediate- term Bond 5% Cash/MMKT (Index) 5/9/2015 13RAVI SHANKAR
- 14. MY suggestions • Icicipru top 100 • Birla sun life top 100large cap • Icici pru mid cap • Can robeco emer.eqMid cap • L&T infra • religare invesco infraSectorial fund • Birla sun life International Equity Fund • JP Morgan JF Greater China Equity Off-shore FundInternational 5/9/2015 14RAVI SHANKAR
- 15. Bond Gilt mid andlong term- Principal govt.securities fund 1 5/9/2015 15RAVI SHANKAR
- 16. Aggressive An aggressiveportfolio is appropriate for an investor with a high risk tolerance and a time horizon longer than 10 years. Aggressive investors are willing to accept periods of extreme market volatility. 85% equity, 15% Bonds 5/9/2015 16RAVI SHANKAR
- 17. Strategy 85% Stocks, 30% Large-capequity 15% Mid-cap equity 15% diversified equity 25% Foreign or Emerging Stock 5/9/2015 17RAVI SHANKAR
- 18. MY suggestions • Icicipru top 100 • Birla sun life top 100large cap • Icici pru mid cap • Can robeco emer.eqMid cap • Birla sun life pure value • Icici pru value discDiversified • Birla sun life International Equity Fund • JP Morgan JF Greater China Equity Off-shore FundInternational 5/9/2015 18RAVI SHANKAR
- 19. Bond ICICI Prudential IntervalFund - Quarterly Interval Plan D - Retail Plan -for I year UTI Annual Interval Fund Sr 1 Inst 5/9/2015 19RAVI SHANKAR
- 20. THANK YOU 5/9/2015RAVI SHANKAR 20