Focus on risk along with Returns while Investing

Invest In Tax Saving Mutual Funds Online

Download Tax Saving Mutual Fund Application Forms

Buy Gold Mutual Funds

Call 0 94 8300 8300 (India)

 

Risk drives return

So, the practice of investing and managing portfolios should focus primarily on managing risk rather than returns. Let us discuss about the portfolio management process. Asset allocation is the process of deciding how to distribute an investor's wealth among different asset classes for investment purposes. An asset class consists of instruments that have similar characteristics, attributes and risk-return relationships. A broad asset class like that of bonds can be divided into smaller asset classes such as government bonds, corporate bonds and high-yield bonds. The asset allocation decision is not an isolated choice; rather, it is a component of the portfolio management process. Let us take an overview of the portfolio management process.

Investment policy statement

The first step in the process is to develop an investment policy statement, or plan, that will guide all future decisions. Much of an asset allocation strategy depends on the investor's policy statement, which includes his goals or objectives, constraints and investment guidelines. Irrespective of who the investor is or how simple or complex the investment needs are, one should develop a policy statement before making long-term investment decisions. The policy statement is a road map where in the investor specifies the type of risks he is willing to take and his investment goals and constraints. All investment decisions are based on the policy statement to ensure they are appropriate for the investor. As investor needs change over time, the policy statement must be periodically reviewed and updated.

Investment strategy

Investment strategy will jointly be determined by the factors such as investor needs, as reflected in the policy statement and financial market expectations. Economies are dynamic and they are affected by numerous industry struggles, politics and changing demographics and social attitudes. Thus, the portfolio will require constant monitoring and updating to reflect changes in financial market expectations.

Portfolio construction

The third step is construction of the portfolio. With the investment policy statement and financial market forecasts as input, the investor needs to implement the investment strategy and determine how to allocate available funds across different asset classes and securities. This involves constructing a portfolio that will minimise

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

1. ICICI Prudential Tax Plan Invest Online
2. HDFC TaxSaver Invest Online
3. DSP BlackRock Tax Saver Fund Invest Online
4. Reliance Tax Saver (ELSS) Fund Invest Online
5. Birla Sun Life Tax Relief '96 Invest Online
6. IDFC Tax Advantage (ELSS) Fund Invest Online
7. SBI Magnum Tax Gain Scheme 1993 Invest Online
8. Sundaram Tax Saver Invest Online
9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

1. Largecap Funds Invest Online
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Birla Sun Life Front Line Equity Fund
2. Large and Midcap Funds Invest Online

1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
2. Mid and SmallCap Funds Invest Online

1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
3. Small and MicroCap Funds Invest Online

1. DSP BlackRock MicroCap Fund
4. Sector Funds Invest Online

1. Reliance Banking Fund
2. Reliance Banking Fund
5. Tax Saver MutualFunds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
3. DSP BlackRock Tax Saver Fund
4. Reliance Tax Saver (ELSS) Fund
6. Gold Mutual Funds Invest Online

1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund