Explore Asset Allocation CombosDesigned to simplify the asset allocation needs of the investors.
Asset allocation is a proven investment strategy that balances risk with rewards (returns) by spreading investments across different asset classes such as stocks, bonds, and cash. Each asset class has different level of risk and return, which makes each of them behave differently over time depending on the prevailing market condition.
Fixed Asset Allocation Combos
Fixed Asset Allocation portfolios are classified in three broad categories based on investors risk taking capacity i.e. Aggressive, Moderate and Conservative. In Aggressive portfolio, equity allocation will be higher so it will be suitable for investors with higher risk appetite. Moderate portfolio on the other hand is suitable for investors with relatively lower risk appetite wherein equity allocation remains at 70%. Lastly, conservative portfolio is suitable for investors with very low risk appetite wherein equity allocation is at 30%.
Fixed asset allocation portfolio will have consistent equity portion throughout and the underlying schemes will be reviewed annually. If the equity allocation increases due to market movement we will rebalance that portion as per our mentioned range, for e.g if equity allocation of 70% in Moderate portfolio increase to 80% because of the rise in market, we will book profit and bring the equity allocation back to 70% at the end of the year.
Dynamic Asset Allocation Combos
Dynamic asset allocation is an investment strategy that involves periodic adjustment of weights for different asset class in a portfolio based on the overall market performance. Dynamic asset allocation strategy is designed to switch between equity and debt depending on the market conditions which is based on certain valuation metrics. Asset allocation and re balancing strategy helps in combating the volatility & staying away from Greed and Fear that prevails in the market.
Based on Asset Allocation model, equity and debt allocation in Aggressive, Moderate and Conservative portfolios are decided within a defined range. Utmost care is taken to ensure that the minimal allocation levels are maintained in these portfolios.
Benefits of Dynamic Asset allocation Combos
- Tailor-made & researched mutual fund portfolios for client.
- Valuation based Model to decide the asset allocation
- Well-Diversified portfolios to minimize the risk
- Portfolios have low volatility.
- Seamless execution service with a single click.
- We have opted for annual rebalancing because of superior back tested performance, lower churning, tax aspect and exit load implications. Rebalancing will be done annually based on calendar year in December
- Rebalancing of asset class is based on 2 valuation parameters which are Price to Earnings Ratio (P/E) and Price to Book Ratio (P/B)
Annual Rebalancing of asset class will be done at two levels
- When P/E or P/B band changes
- If P/E or P/B band doesn’t change, restoring Equity debt allocation to the desired allocation level beyond 5% range