tag:blogger.com,1999:blog-7148222695370746347.post6182804876764337987..comments2023-10-15T17:16:24.091+05:30Comments on Stock Market Charts | India Mutual Funds Investment: How to reallocate your assetsSubhankarhttp://www.blogger.com/profile/13248068905130821262noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-7148222695370746347.post-19163676173790519202011-07-20T13:27:03.481+05:302011-07-20T13:27:03.481+05:30Appreciate the feedback, Naresh.Appreciate the feedback, Naresh.Subhankarhttps://www.blogger.com/profile/13248068905130821262noreply@blogger.comtag:blogger.com,1999:blog-7148222695370746347.post-72448948622804884382011-07-20T13:02:55.099+05:302011-07-20T13:02:55.099+05:30One of the best article I have ever come across. T...One of the best article I have ever come across. Thanks for sharing your knowledge.EkVeerhttps://www.blogger.com/profile/17083189472964103156noreply@blogger.comtag:blogger.com,1999:blog-7148222695370746347.post-34173375961824056602009-10-01T09:19:13.947+05:302009-10-01T09:19:13.947+05:30Appreciate the comments, Jasi.
LIC term insurance...Appreciate the comments, Jasi.<br /><br />LIC term insurance should be looked at as insurance only - not as an investment. ULIPs are a ploy by insurance companies to make money off investors. <br /><br />For investing a fixed amount every month, follow your asset allocation plan. A portion should go into buying stocks or index fund units; a portion should go into a debt fund or a recurring deposit in a bank; balance should stay in a savings bank or a liquid fund.Subhankarhttps://www.blogger.com/profile/13248068905130821262noreply@blogger.comtag:blogger.com,1999:blog-7148222695370746347.post-53169784246980921492009-09-30T22:45:19.740+05:302009-09-30T22:45:19.740+05:30Hey,
You have no idea how much research (googling...Hey,<br /><br />You have no idea how much research (googling) on this topic I have done. And I must admit, this article and the other article you have written on PPB are one of the best I have come across. The beauty of what you have written, which incidentally is the issue with everything I have read is, I can relate to it. Others are so vague that even after I read, I end up with some sort of emptiness. :) Not anymore. I really appreciate your effort.<br />I had a few doubts ... <br />1) How about LIC, ULIPs etc? Do they count as "investments" in debt? Personally I think no. Right?<br />2) How do I re-allocate my assets if lets say I have around 15k per month to invest? How do i go about distributing those fresh funds?Jasihttps://www.blogger.com/profile/14267764047614537730noreply@blogger.comtag:blogger.com,1999:blog-7148222695370746347.post-81651649010836379402009-06-21T23:32:45.373+05:302009-06-21T23:32:45.373+05:30Thanks, Suraj.
Periodicity of portfolio reallocat...Thanks, Suraj.<br /><br />Periodicity of portfolio reallocation should depend on each individual's investment style - regardless of bull or bear market. The reason I mentioned once or twice a year is to avoid the habit of frequent trading (which only makes brokers rich).<br /><br />Regarding tax angle, please remember that taxes are paid only if you make a profit in the short term. If a stock runs up very rapidly within two or three months, it is better to book partial profit and pay tax on the profit. After 1 year the market may tank and all the profit may disappear. But there is no formula - other than the 25%-75% suggested by Graham.Subhankarhttps://www.blogger.com/profile/13248068905130821262noreply@blogger.comtag:blogger.com,1999:blog-7148222695370746347.post-4758298378259250852009-06-21T22:57:09.807+05:302009-06-21T22:57:09.807+05:30Dear Shubhankar ji,
Nice write up. learning new t...Dear Shubhankar ji,<br /><br />Nice write up. learning new things everyday is exciting. I have a question. You said we should do this reallocation once or twice a year. My query is regd the tax angle. Would you suggest doing this once a year so that where possible we can make use of the capital gains tax free provision which won't be available otherwise?<br /><br />Also, does this periodicity change in a bear v/s a bull market?<br /><br />thank you<br />surajsbhttps://www.blogger.com/profile/02401572054599314307noreply@blogger.comtag:blogger.com,1999:blog-7148222695370746347.post-2223643926175517962009-04-21T19:39:00.000+05:302009-04-21T19:39:00.000+05:30Hi Rishi
Asset reallocation is something that you...Hi Rishi<br /><br />Asset reallocation is something that you do once or twice a year. If the equity value goes down, the percentage allocation to fixed income investments and cash will increase. Use the cash to buy more equity. (If a really good opportunity comes, break an FD and sacrifice some interest to generate cash. But you can avoid this by opting for quarterly interests from your FD.)<br /><br />Instead of looking for new ideas, I top up on existing stocks in the portfolio during reallocation.Subhankarhttps://www.blogger.com/profile/13248068905130821262noreply@blogger.comtag:blogger.com,1999:blog-7148222695370746347.post-19747951821753750482009-04-21T14:51:00.000+05:302009-04-21T14:51:00.000+05:30Subhankarji,
How does one approach re-balancing...Subhankarji,<br /><br /> How does one approach re-balancing in case of equity market going down instead of moving up by the time one has invested?<br /> For example what should one do when the equity value of 13 lakhs goes down to 11 lakhs, down by close to 15%? <br /><br />Thanks<br />RishiRishihttps://www.blogger.com/profile/13418674527881171689noreply@blogger.comtag:blogger.com,1999:blog-7148222695370746347.post-30353870443995645452008-12-27T20:37:00.000+05:302008-12-27T20:37:00.000+05:30That calculation did get a bit complicated! It is ...That calculation did get a bit complicated! It is preferable to keep things as simple as possible.<BR/><BR/>The (100 - age) for the percentage equity allocation works pretty well. It is a thumb rule and can be changed, e.g. (110 - age), as per the risk tolerance of individual investors.<BR/><BR/>The minimum 25% and maximum 75% equity allocation was suggested by Benjamin Graham - an acknowledged investment guru. I have found it quite useful for periodic reallocation of assets.Subhankarhttps://www.blogger.com/profile/13248068905130821262noreply@blogger.comtag:blogger.com,1999:blog-7148222695370746347.post-67337403241013629352008-12-27T20:04:00.000+05:302008-12-27T20:04:00.000+05:30Nice write up Subhankar.Pondering over it, I think...Nice write up Subhankar.<BR/><BR/>Pondering over it, I think we should change some considerations:<BR/><BR/>not to take 100 (age) as denominator. Rather than taking the working tenure. Say, you are 35 and planning to work (to earn) until 50, Abiding to range of (25-75%); equity allocation would be:<BR/>= ((Work years planned - work years already over )/(Work years planned))* ( Equity allocation Range) + Lower limit of allocation in the range<BR/><BR/>say, if I am 31, started work at 30 and want to work until 50, abiding to 25-75% equity allocation range, then :<BR/>(((50-30) - (31-30))/(50-30)) * (75-25) + 25<BR/><BR/>...heck...getting lost in numbers...But its a great topic to debate and come to conclusions. Thanks for starting it.<BR/><BR/>-RK<BR/>=Unknownhttps://www.blogger.com/profile/14294673363820024288noreply@blogger.com