There is No Fate But What We Make: Portfolio Update in Money Today magazine

Sunday, October 28, 2007

Portfolio Update in Money Today magazine

The latest issue of Money Today (page 32) magazine has taken a second look at
some of the Portfolios they have reviewed over the last one year.
The section is here.
Here's a portfolio that was originally reviewed in March '07 issue.
The article is cross-posted here:

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http://moneytoday.digitaltoday.in/good-getting-better-3.html

Good getting better
October 24, 2007

Sumant Sarkar is reaping rewards of a good diversification strategy

BEFORE THE CHECK-UP
* Investments spread across all asset classes
* Aggressive equity player investing in both mutual funds and direct equity
* Ample insurance cover through term and endowment policies

WHAT WE SAID
* Tweak investments in funds for better diversification
* Convert endowment policies into term plans, take family health cover
* Increase investment in pension plans to build retirement corpus
* Take a loan for investing in real estate

ACTION TAKEN AFTER OUR PRESCRIPTION
* Changed mutual fund portfolio according to advice
* Bought a family floater health insurance
* Taken a loan for second real estate investment. Paid higher down payment than originally planned.
* Investing in equity-diversified funds rather than pension plans for building retirement corpus.

FINANCIAL HEALTH NOW
Financial planning couldn’t get a better brand ambassador. The rewards are for all to
see (and envy) in Sumant Sarkar’s portfolio. Invested across all asset classes,
he’s making his money work terribly hard. But it is the investment blend that is amazing.


For most investors, one property purchase gobbles away 60-70%
of total assets. Here’s Sarkar, owner of a Rs 32-lakh apartment
with real estate constituting just 27% of his portfolio. Even equity
investments stand a notch higher. It was a near-perfect
investment strategy and we presented it likewise — a model portfolio.

But some nip and tucks would make a better fit. Like reducing
concentration in Franklin India Prima fund and investing in
mid-caps (already in his kitty) for better diversification.
Spreading investments within an asset class is important
to reduce risk. Especially in the unpredictable markets where
a consistent performer can take a sudden downturn.

2 Comments:

At Sunday, October 28, 2007 9:25:00 AM, Anonymous Anonymous said...

The cash portion of the Asset Allocation Plan (AAP) was 16% because of pending short term goals in March 2007 - down payments for a car and second real estate investment
As of today, the Asset Allocation Plan (AAP) is as follows:
Equity 39%
Debt 20%
Real Estate 39%
Metal (Gold) 2%

- Sumant

 
At Saturday, May 31, 2008 2:25:00 PM, Anonymous Anonymous said...

Where do you get so much money in the first place, eh?

 

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