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"Knowledge Plus for Wealth + " will give you the overview of the recent happenings in the financial market. It is not only enough to have a portfolio, but it is equally important to have a right asset allocation within the portfolio based on your financial goals to ensure that none of your goals remains unachieved. In this issue, we will cover: - Latest Happenings in the Financial Markets - Introduction To Goal Based Asset Allocation - Parameters to be Considered in Goal Based Asset Allocation - Case Study – Right Way of Having Goal Based Asset Allocation Kindly Download the details from following Link : http://www.youtube.com/watch?v=zWyl_GmoWFU&feature=youtu.be Kindly share your valuable feedback at [email protected] to help us serve you better.
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FromResearch Desk
VALUE PLUS - The Family OfficeKNOWLEDGE PLUSFor Wealth Plus
31st August - 2013
Hot Topic of the Week
GOAL BASED ASSET ALLOCATION
Knowledge Plus for Wealth +
Last week at the Financial Markets!!!
• SENSEX rose by 650 points (3.49%) and closed to 19270 at end of the week.
• (FIIs) remained net buyer in equity and debt segment with net inflow of Rs. 882 crore and Rs. 1689 crore respectively.
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News Impact
• Core Sector grows at four month high of 3.1% in July
• Having weight age of 37.9% in the overall IIP, Positive IIP growth can be expected.
• Indian services PMI fell further to 47.6 in August
• GDP may reduce further as service sector has 60% contribution to GDP
• Rating agency may downgrade Indian economy
• FII outflows may start.
Last week at the Financial Markets!!!
Knowledge Plus for Wealth +
Price Performance of Different Asset Class
Sensex Crude $/bbl
Silver $/t oz
Copper $/MT
Dow Jones
EURUSD Gold USDINR
-1.00%
-0.50%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%3.49%
2.68%
1.62%
0.85%0.76%
-0.33%-0.69% -0.70%
Next Week in the Financial Markets...?
Knowledge Plus for Wealth +
• IIP (Index of industrial production) numbers and CPI (inflation) data for the month of July, will be released on 12th September 2013
• Price hike in petroleum products like diesel, kerosene, and LPG.
Hot Topic of the Week
GOAL BASED ASSET ALLOCATION
Knowledge Plus for Wealth +
Asset Allocation
• An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets considering various factors like:
» Asset class» Goals Based » Country/Economic diversification» Risk Profile» Age
• Thus the major objective of ‘Asset Allocation’ is diversification of risk to maximize the returns.
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Goal Based Asset Allocation- Introduction
• Traditionally, investments were done with a view to earn maximum returns on the portfolios.
• While this approach has proven to be very effective in helping to maximize the risk-return relationship of a portfolio, it can make it challenging for investors to measure how well they’re doing toward achieving specific goals.
• With goal based investing, the focus of the investment approach is on funding the personal financial goals.
• Here current asset allocation is evaluated against client’s goals . Also investment horizon(s) and the willingness to take risk are accounted for in the process.
• The objective is to maximize the probability of reaching the objectives whilst minimizing downside risk. Knowledge Plus for Wealth +
Goal Based Asset Allocation- Parameters
1. Type of the goal
2. Time horizon of each goal
3. Priority of the goal
4. Risk Appetite.
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Case Study 1: Priority & Time HorizonGoals of Mr. A
Priority
Low
High
Short Term Long Term
International Tour Next Year
University Fees of Mr. A’s Child after 2 years
Comfortable Retirement after 20 years (Living Expenses to keep
pace with inflation
Buy a Villa Abroad after 20 Years
Time HorizonKnowledge Plus for Wealth +
Asset Allocation for Mr. A
Knowledge Plus for Wealth +
• High Priority: Short Term• Low Risk
• Low Priority: Long Term• High Risk
• High Priority: Long Term• Moderate Risk
• Low Priority: Short Term• Moderate Risk
International Tour
Comfortable Retirement
University Fees
Buying Villa
THANK YOU
Knowledge Plus for Wealth +
Research Desk
@VALUE PLUS - The Family Office
Office: (0265 -2324600,6629800)Email: [email protected]: www.valueplusinv.com