On the special demand of our viewers we have released the Part 2 of our educative series on Asset Allocation - Smart Investing

1. Welcome to Part 2
SMART INVESTMENT SERIES

2. Session Host
Infinity Finserv (P) Ltd
212 Saran Chambers 2 , Park Road, Lucknow -
226001
Ph # 9307218766
Website : https://infirupee.com
Facebook : FB/infirupeee
Youtube : Infinity Finserv

3. Recap

4. What we do ?
• Wealth Coaching
• Behavioral Training for investors
• Motivator and hand holder
• Book Keeping & Accounting with full Safety

5. What is a price
of an Asset ?
“ !कसी भी चीज़ का दो भाव होता है – एक जो उसक3 असल6 क़3मत
है और दूसरा वो जो नज़=रए से बनता है”
“ जब नज़=रया अलग और अनेक होते हD तो भाव मE Fयादा
उथल पुथल होती है – जब नज़=रया सभी का एक तरफ़ होता है
तो भाव मE कम उथल पुथल होती है”
By : Infirupee Academy

6. What makes the
difference in your
wealth ?
1. The step you take
according to your नज़#रया
and
2. How do you control your
emotions and behavior on
the basis of other peoples
नज़#रया

7. The required action
• One SIP in each ( strech yourself for few years)
• Tech Fund
• International NASDAQ fund
• Infrastructure Fund
• Small & Midcap Fund
• Buy Stocks or MF units in relevant Equity schemes,
regularly , whatever be your contribution….keep
adding

8. Part 2 of the
session
The stable path

9. If you want to
grow your
wealth at an
average
speed – free of
all nuances !
• Go for Dynamic Asset Allocation
• FOF , or
• Regular

10. What is Asset
Allocation ?
Distribution of funds in different Asset Class – Debt, Equity, Gold, Dollor etc

12. Why Asset Allocation ?
Its an old age theory of investing – Don’t put all eggs in one basket..

13. So what is so big about it ?

14. Asset
Allocation –
Type 1
• Just divide in multiple Assets and generate the
average Returns

16. Normal Asset Allocation
( Sample)
Indian
Equity
International
Equity Gold Debt
Returns
Weightage 25% 25% 25% 25%
1 Yr ROI 15% 12% 5% 6% 10%
1 Yr ROI 2% 8% 12% 6% 7%
2 Yr ROI -5% 2% 12% 6% 4%
3 Yr ROI 15% 12% -5% 6% 7%

17. Asset
Allocation –
Type 2
• Just divide in multiple Assets and generate the
average Returns
• Keep changing the Investment Weightage from
time to time

18. Dynamic
Asset
Allocation

19. What is
important in
Dynamic Asset
Allocation?
• You need to understand all Assets and its
correlations on both macro and micro basis
• You need to be quick in terms of implementing
the change
• You need to be above emotions and stick to
your rules of allocations
• Your allocation should be cost effective
• Capital Protection should be your first priority
and then the returns

20. What is
important in
Dynamic Asset
Allocation?
• You need to understand all Assets and its
correlations on both macro and micro basis
• You need to be quick in terms of implementing
the change
• You need to be above emotions and stick to
your rules of allocations
• Your allocation should be cost effective
• Capital Protection should be your first priority
and then the returns

22. Corelations
• Bonds don’t show any strong relationships, hence, uncorrelated and you get
diversification benefits from adding bonds to your portfolio. Looking at the 10-year
rolling correlation, we can see that bonds have been uncorrelated to equity over
time as well.
• Gold is uncorrelated to all except the US dollar. You get diversification benefits from
adding gold to your portfolio. Gold has a negative correlation to the US dollar, as we
look at gold in terms of US dollar, a weaker dollar means a higher US$/oz t price.
• The US dollar has mostly negative relationships. The US dollar should have a
negative relationship to oil, as oil is traded in US$, the correlation shows signs of
that. There’s a negative relationship between the US dollar and world equity. Dollar
down, stocks up?

24. What is
important in
Dynamic Asset
Allocation?
• You need to understand all Assets and its
correlations on both macro and micro basis
• You need to be quick in terms of implementing
the change
• You need to be above emotions and stick to
your rules of allocations
• Your allocation should be cost effective
• Capital Protection should be your first priority
and then the returns

25. Managing & Implementing the Asset Allocation
• Challenge is to transact
• Challenge is to manage Tax
• Challenge is to understand when to take action ?

26. Mutual Fund
presents Asset
Allocation
Plans
• Regular or Fixed Asset Allocation Plans
• 2 Assets : Debt & Equity
• 3 Assets : Debt, Equity & Gold
• 4 Assets : Debt , Equity , Gold & International Equity
• Dynamic Asset Allocation Plan
• Taxation is kept in mind ( Balanced Advantage Funds)
• They keep Equity Plus arbitrage Plus Derivatives
at 65% always to keep it under Equity Taxation
• They keep Changing the Debt - Equity ratio
based upon their inhouse formulae
• Taxation is not the key consideration ( Dynamic Asset
Allocation Funds)
• They do not invest in arbitrage or Derivatives to
maintain the Equity weightage

27. Dynamic
Asset
Allocation

28. From where does they get Assets ?
External Internal
Such Funds are called as FOF ( Fund of
Funds)

29. Example of Dynamic Asset Allocation Funds –
External Assets
• See the Table

30. Example of Dynamic Asset Allocation Funds –
Internal Assets
• See the Table

31. New launches under
the Asset Allocation
category
• HAF : HDFC Asset Allocator
Fund – Fund of Funds
• Opening 16th April 2021
• Closing 30th April 2021

33. How they will allocate ?
• Using an in-house model that incorporates various valuation parameters such as
the Price-Equity (PE) and Price-to-Book ratios, allocation to equity, debt and gold
would be decided. It will invest 40-80 percent in equity, 10-50 percent in debt and 10-
30 percent in gold.

34. Have you checked your overall Asset Allocation
?
IS IT DYNAMIC ? IS IT ADEQUATE ?

35. Infirupee.com
Check here …

36. Thanks