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Asset Allocation Strategies

Our Asset allocation strategy aims at investing your funds into assets based on their relative attractiveness. This strategy considers your investment horizon, risk profile and current macroeconomic parameters to create proportionate allocation of capital. For example: if you want to invest 1 lac rs and your target returns is 15% per annum, then the model suggest how much of the 1 lac should be invested in equities today. The balance amount gets invested in money market funds and gives fixed returns. The portfolio is rebalanced on monthly and quarterly basis based on investment horizon.

We use the following parameters to identify allocation to equity and fixed income assets.

parameters

Minimum Starting Amount (for this strategy)

Investment Amount
Lumpsum Investment 25,000
Monthly Systematic Investment Plan (SIP) 5,000

Tax Treatment

Instrument Short Term (Upto one Year holdings) Long Term (More than one year old investments)
Money Market funds Taxed as per individual tax slab In case od dividend distribution, 28.33% on the returns generated 10% without indexation OR 20% with indexation, plus applicable cess
Equity Index Funds 15% Zero
Gold Funds As per individual tax slab 10% without indexation OR 20% with indexation, plus applicable cess