Asset Allocation Strategies
Our Asset allocation strategy aims at investing your funds into assets based on their relative attractiveness. This strategy considers your investment horizon, risk profile and current macroeconomic parameters to create proportionate allocation of capital. For example: if you want to invest 1 lac rs and your target returns is 15% per annum, then the model suggest how much of the 1 lac should be invested in equities today. The balance amount gets invested in money market funds and gives fixed returns. The portfolio is rebalanced on monthly and quarterly basis based on investment horizon.
We use the following parameters to identify allocation to equity and fixed income assets.
Minimum Starting Amount (for this strategy)
|Monthly Systematic Investment Plan (SIP)||5,000|
|Instrument||Short Term (Upto one Year holdings)||Long Term (More than one year old investments)|
|Money Market funds||Taxed as per individual tax slab In case od dividend distribution, 28.33% on the returns generated||10% without indexation OR 20% with indexation, plus applicable cess|
|Equity Index Funds||15%||Zero|
|Gold Funds||As per individual tax slab||10% without indexation OR 20% with indexation, plus applicable cess|