what is asset allocation? different asset classes different asset classes cashbondsstock*real estate...
TRANSCRIPT
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What is Asset What is Asset Allocation?Allocation?
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Different Asset ClassesDifferent Asset Classes
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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
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Why Asset Allocation?Why Asset Allocation?
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RRIIsskk –– RReettuurrnn TTrraaddeeooffff
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Risk-Return Trade OffRisk-Return Trade Off
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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?
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Different Model Portfolio’s range from Different Model Portfolio’s range from conservative to aggressiveconservative to aggressive
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Different Model PortfoliosDifferent Model Portfolios
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RebalancinRebalancingg
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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)
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ConclusionConclusion
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CreditsCredits
Hiren BhattHiren Bhatt 0808
Devanshee SanghaviDevanshee Sanghavi 4343
Sagar ShahSagar Shah 4848
Samkit ShahSamkit Shah 4949