How to go about Asset Allocation ?

#1
Hi Friends

I have been investing in Mutual Funds regularly since 2011. Now to be honest i only learnt which funds to choose and kept revamping my portfolio with temptation of not exiting in existing fund but investing in new fund that performed well in the year i decided to revamp. As a result, my mutual fund portfolio swelled to about 12 funds. Last year after extensive read, i understood the importance of trimming the portfolio. I have started doing that and hopefully by March 2020 , my folio will have max 5 funds.

Now the next question is about asset allocation. I have been reading lot of articles on it and the more i read i am getting more confused. While i have understood the basics, i am stuck how to rebalance the portfolio every year or twice the year. I have investment in PPF and in real estate as debt components while growth mutual funds as Equity components. The debt component is not at all liquid so i began searching where should I invest to withdraw and put it in another class whenever i want.

This lead to lot of options like Bank FDs, Corportabe FDs, Corporate Bonds, Liquid Funds, Gilt Funds.. honestly my head is spinning as i no good at all this. Secondly the debt equity funds have tax components too. More than the question of paying taxes, i feel it is very complicated to compute taxation, indexation and what not.

Cutting my story short, i want to know is there a simple debt instrument where i can liquidify anytime to put in to equity class to balance my folio. Also, would like some advice and your stories about wealth creation. By the way, my goal is wealth creation only and i plan to retire in maximum 10 years from now hopefully.

Thanks

Jeet
 
#2
Hi Friends

I have been investing in Mutual Funds regularly since 2011. Now to be honest i only learnt which funds to choose and kept revamping my portfolio with temptation of not exiting in existing fund but investing in new fund that performed well in the year i decided to revamp. As a result, my mutual fund portfolio swelled to about 12 funds. Last year after extensive read, i understood the importance of trimming the portfolio. I have started doing that and hopefully by March 2020 , my folio will have max 5 funds.

Now the next question is about asset allocation. I have been reading lot of articles on it and the more i read i am getting more confused. While i have understood the basics, i am stuck how to rebalance the portfolio every year or twice the year. I have investment in PPF and in real estate as debt components while growth mutual funds as Equity components. The debt component is not at all liquid so i began searching where should I invest to withdraw and put it in another class whenever i want.

This lead to lot of options like Bank FDs, Corportabe FDs, Corporate Bonds, Liquid Funds, Gilt Funds.. honestly my head is spinning as i no good at all this. Secondly the debt equity funds have tax components too. More than the question of paying taxes, i feel it is very complicated to compute taxation, indexation and what not.

Cutting my story short, i want to know is there a simple debt instrument where i can liquidify anytime to put in to equity class to balance my folio. Also, would like some advice and your stories about wealth creation. By the way, my goal is wealth creation only and i plan to retire in maximum 10 years from now hopefully.

Thanks

Jeet
Try Ultra short term bonds of Franklin Templeton or ICICI Prudential mutual fund...they give better returns than bank FD and the money parked can be liquidated in 1 day to deploy when the market opportunity arises.

Smart_trade
 

Similar threads

Broker Special Offers

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Name:Phone:
Email:City:
State:
Are you a day trader?