2. What assets can you build?
• Equity
• Real Estate
• Gold
• Fixed Return Instruments ( FD,PPF
etc)
3. What is asset allocation?
• Distribution of the investment among
the various asset classes is termed
as asset allocation
• Asset allocation depends on risk
profile of an investor
4. What is risk profile?
• The amount of risk that an investor
can bear on his investment is called
his/her own risk profile.
• Eg. On a 100 rs investment, if an
investor can afford to lose only 20
rs , his risk profile is low whereas if
he can afford to lose 50 rs, his risk
profile is high.
5. Invest for Life
• Various stages of investment
Bachelor
Newly Married
Parents with kids
Approaching Retirement
Post Retirement
6. Bachelor
• Age Limit – 21 to 27 yrs
• Risk Profile – High
• Assets – Equity, Real estate
• Duration of Investment – Long term
• Asset allocation can be higher for
equities.
• Liquidity can be kept at lower levels.
7. Newly Married
• Age Limit – 28 to 32 yrs
• Risk profile needs to be reduced
since there is a dependant added
after marriage.
• Assets – Equity , Fixed Instruments,
Real estate
• Asset allocation should gradually
move towards fixed return
instruments.
Equity – 50% Fixed Instruments – 50
8. Parents with Kids
• Age Limit – 35 to 50 yrs
• Risk Profile – Moderate to Low
• Assets – Balanced mutual funds,
fixed return instruments
• Investment term – Medium
• Liquidity levels needs to kept at
higher position for immediate needs
• Equity – 25 % Fixed return
instruments – 75%
9. Nearing Retirement
• Age – 50 to 57 years
• Risk Profile – Low to Zero
• Assets – Fixed Return instruments
• Investment horizon – Short
• 90% of investment should be highly
liquid
• Equity – 0-10% , Fixed instruments –
90 – 100%
