Model Basket of Mutual Funds: A Stabilised and Constantly Managed Asset Allocation

This portfolio is suitable for investors aged between 25 to 40 years. The portfolio is designed to serve investors with moderate to aggressive risk profiles. It strives to generate steady growth for investors by re-balancing the fund every 12 months to its original position of 75:25. The reason for rebalancing 12 months once is due to tax benefit of 5%, ((STCG (15%) - LTCG (10%)) = 5%) making the portfolio more tax efficient.

Portfolio Suitability

S. No:

Details

1

Investor Age

25 to 35 Years

2

Minimum Investment Horizon

5 Years

3

Equity Allocation

75%

4

Debt Allocation

25%

5

Rebalancing period

12 Months once

 

The Model Portfolio constituents are as follows:

Portfolio

S. No:

Fund

Allocation

1

Large Cap Funds

15%

2

Large & Mid Cap Funds

20%

3

Flexi Cap Funds

20%

4

Mid Cap Funds

10%

5

Thematic/Sectoral Funds

10%

6

Debt (Currently Liquid Funds)

25%

 

Rationale:

  1. Large-cap funds in the portfolio are restricted to 15% only because the Flexi caps and large & mid-cap funds also consist of large-cap stocks.

  2. Mid-cap stocks allocation is about 30% to 30% in the portfolio, along with the large-cap allocation of 30% to 40%. Thus the portfolio will be equipped to capture returns with the growth of midcaps and capture stability from the large-cap stocks.

  3. A thematic fund is necessary for a portfolio; these funds can help boost the fund's performance. But to avoid high manual intervention, allocation to thematic funds is reduced to a large extent to 10%.

  4. 25% allocation is given to debt; currently, liquid funds are chosen to provide confidence to investors to stay invested for more extended periods in the portfolio.

  5. We will re-balance the portfolio once a year, and automatically, this re-balancing results in buying more at low prices and booking profits when the markets are high.

 

The Portfolio and expected returns are as follows:

Name of the Asset

Investment Mode

Allocation%

Lumpsum Amount

Expected ROI

FV 5 years

           

Fund 1

Lumpsum/SIP

15.00%

₹ 1,50,000.00

12.00%

₹ 2,64,351.25

 Fund 2

Lumpsum/SIP

20.00%

₹ 2,00,000.00

14.00%

₹ 3,85,082.92

Fund 3

Lumpsum/SIP

20.00%

₹ 2,00,000.00

14.00%

₹ 3,85,082.92

   

55.00%

₹ 5,50,000.00

 

₹ 10,34,517.09

Fund 4

Lumpsum/SIP

10.00%

₹ 1,00,000.00

15.00%

₹ 2,01,135.72

Fund 5

Lumpsum/SIP

5.00%

₹ 50,000.00

15.00%

₹ 1,00,567.86

Fund 6

Lumpsum/SIP

5.00%

₹ 50,000.00

15.00%

₹ 1,00,567.86

   

20.00%

₹ 2,00,000.00

 

₹ 4,02,271.44

Fund 7

Lumpsum/SIP

25.00%

₹ 2,50,000.00

5.00%

₹ 3,19,070.39

   

25.00%

₹ 2,50,000.00

 

₹ 3,19,070.39

   

100.00%

₹ 10,00,000.00

 

₹ 17,55,858.91

 

For further queries regarding investment planning, Customised portfolio design, and portfolio re-balancing, please call us at +91 7305923322

Please write to us at research@adityatrading.com

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This report is only for the information of our customers. Recommendations, opinions, or suggestions are given with the understanding that readers acting on this information assume all risks involved. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. ATS and/or its group companies do not as assume any responsibility or liability resulting from the use of such information.

 

 

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