Fund Allocation
FUND ALLOCATION
Description also available in video format (attached
below), for better experience use your desktop.Introduction
·
Fund Allocation is a
basic decision of an investor that how he is going to distribute his investable
funds among the different asset classes available in the market
o
Stocks
o
Fixed income
o
Cash equivalents
o
Alternative assets
o
Real estate
·
The considering factors for the fund allocation
are
o
Investment objectives
o
Time horizon for a goal
o
Amount of money you have to invest
o
Risk tolerance
o
Experience
o
Age
o
Net worth
Strategies
of Funds Allocation
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Integrated fund allocation
o
Capital market conditions
o
Investors objective
o
Constraints
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Strategic fund allocation
o
Constant mix
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Tactical fund allocation
o
Mean reversion
o
Inherently contrarian
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Insured asset allocation
o
Constant proportion
Fund
Allocation Process & Key Points
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Process
o
Define goal & horizon of time
o
Assess our risk tolerance
o
Identify asset mix of current portfolio
o
Create target portfolio
o
Specific investment selection
o
Review & rebalance the portfolio
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Key Points
o
Establish your policies & objectives
o
Stay focused and stick to your plan
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Educate yourself to make informed decisions
o
Monitor investment performance
o
Seek a professional advisor
Video
Description
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