You start with a certain asset allocation mix. At regular intervals, you bring your portfolio to original asset allocation mix. Let’s say you have Rs 20 lacs to invest. You have two asset classes Equity and Debt. You invest Rs 10 lacs in Equity and Rs 10 lacs in Debt. Asset allocation of 50:50. During the next 1 year, Equity gives 20% returns while Debt gives 5% … [Read more...] about What is Portfolio Rebalancing? How it helps?
fee based financial planner
For many of us, when we think about investments, the focus is mostly on returns. Not unfair. Everybody wants adequate reward for the risk taken. However, when you think in terms of financial goals or financial planning, return is not the only part of the equation. Let’s look at the equation for compounding. A = P * (1+r)^n Where P is the amount invested, r is return … [Read more...] about Financial Planning and Investing more
I get many inquiries about financial planning or investment advisory services. During the follow-up discussion, a few prospects go cold once we start talking about the fees. I do not deny affordability can be an issue. A few perhaps feel that the advice (value) is not worth the price. I am quite finicky about who I onboard as a client. A few prospects are lost there too. Fair … [Read more...] about The Cost of a Poor Financial Product is much higher than the cost of Professional Investment Advice