01:51 AM
Thursday ,
16 Aug 2018
Asset Allocation
Markets moving south, whats your strategy to manage clients portfolio

The Post Budget Fall would have rattled even the seasoned investors including many an Advisor too.  So what should an advisor do? How should he place his clients portfolio?

Srikanth Matrubhai from Bangalore, shares his views on how he positions his clients portfolios.

A Prudent Portfolio MUST be such that it can stomach such wild swings.


I am a big votary of ASSET ALLOCATION and the ever changing Markets will not affect my strategy of either becoming too bullish or bearish.

I always look at my investors Goal and invest in appropriate funds depending on the time horizon and risk profile.

Whether the Markets zoom by 1000 points or tank by 1000 points, I change the funds in the portfolio and the percentages only if the Asset Allocation tells me to.

Thats precisely the reason I am a big advocator of Balanced Funds as you do not have to dynamically keep changing your strategy from Equity to Debt as the Fund itself takes care of the same.

Moreover, if you go through the Data, you will find Balanced Funds (over a period of time) tends to give more or less the same returns that Large Cap Funds that too with lesser risk.

Balanced Funds actually takes advantage of falls such as the Present ones.


To affirm, a good Asset Allocation Portfolio  may underperform in a raging Bull  Market but when the markets tank they do a huge favour in protecting your Downside and only then you realise the importance of the huge role that an Asset Allocation plays.

Volatilty is a part and parcel of all Asset Classes. Setbacks, Recoveries go hand in hand.

Its staying disciplined and sticking to your Asset Allocation that ensures that you reach your Goal.

Short Term Volatility should be ignored. Corrections such as these are actually healthy.

For those who do not follow Asset Allocation, the southward trend in markets is actually a good time to INCREASE your Equity Exposure if your Goals and Asset Allocation allows you to.

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  • Comments :
  • Really informative... interested in such more articles
  • Date : 3/11/2018 8:57:31 AM
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