Asset Allocation

Valuation based asset allocation is the disciplined implementation of agreed investment strategy based on investor risk tolerance, financial goal and time frame. Timely review on agreed allocation between assets and necessary changes in it will give an edge to this.

The three main asset classes are equities, fixed-income, and cash and equivalents /money market instruments- have different levels of risk and return, so each will behave differently over time.

The primary goal of a valuation based asset allocation is to create an asset mix that seeks to provide the optimal balance between expected risk and return for a long-term investment horizon.

There is no simple formula that can find the right asset allocation for every individual. However, the consensus is that asset allocation is one of the most important decisions that investors make. In other words, the selection of individual securities is secondary to the way that assets are allocated in Equities, bonds, and cash and equivalents, which will be the principal determinants of your investment results.

At Sahjanand Finserve, our first step is to develop a holistic financial plan for our client to achieve his financial goals. Investors may use different asset allocations for different objectives.

Constant monitoring is done to factor in any adjustments and changes in goals that could take place in the client’s life at any time and revamp the portfolio by making strategic changes in his asset allocation and rebalancing the portfolio accordingly.

To get fresh perspective on your Asset allocation allow us to connect with you.