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