ASSET
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Transcript of ASSET
Factors influencing Asset Factors influencing Asset AllocationAllocation
1. Time Horizon1. Time Horizon
2. Risk Tolerance2. Risk Tolerance
3. Currency Risk3. Currency Risk
4. 4. CorrelationCorrelation
Eeny, Meeny, Miney, Mo… Eeny, Meeny, Miney, Mo… Deciding What's Right!Deciding What's Right!
• As each Asset Class has varying levels of return As each Asset Class has varying levels of return for:for:
A certain risk, A certain risk,
Your risk tolerance, Your risk tolerance,
Investment objectives, Investment objectives,
Time horizon and Time horizon and
Available capital Available capital
• Two important questions:Two important questions:
a.a. which asset?which asset?
b.b. how much of it?how much of it?
Different Model Portfolio’s range from Different Model Portfolio’s range from conservative to aggressiveconservative to aggressive
Asset Allocation for Kumar and VivekAsset Allocation for Kumar and Vivek
Kumar Vivek
Fixed Income 10% 20%
Equities 30% 20%
Property 50% 50%
Gold 5% 5%
Cash 5% 5%
(Allocation is a percentage of Kumar and Vivek's (Allocation is a percentage of Kumar and Vivek's portfolios)portfolios)