Discover and read the best of Twitter Threads about #AssetAllocation

Most recents (24)

We have been told following:
1. Time in market more important than timing the market
2. Long Term is 5 yrs plus

Chart will prove the above wrong. First, timing the market is more important then time in the market

Entry as important as Exit points. There are many such examples
Investing at right Valuations is of paramount importance

Cannot buy at any levels and expect good returns going forward

If bought at expensive valuations-long term may change from 5 to 7 to 10 years

From 01-01-08 to 01-01-21 - 14 years NIFTY - 7.63% p.a. -sub optimal returns
When one invests at expensive valuations-like current period, you are eating into future returns

In such instances, tone down your future returns expectations

Otherwise you will have regrets and disappointments in future

Invest wisely without having #FOMO thru #AssetAllocation
Read 4 tweets
2 Our goal is to show, as objectively as possible, the discrepancy between the intrinsic and the current value of the S&P 500 and what it implies for future returns.

@jessefelder @LeutholdGroup @HorizonKinetics @Not_Jim_Cramer @patrick_oshag @5thrule @MacroCharts @macro_srsv Image
3 Our conclusion is that the S&P 500 is not likely to have a positive nominal total return in the next 10 years and a ‘miracle’ would be needed to achieve positive real total returns.

@CliffordAsness @RA_Insights @GestaltU @choffstein @hblodget @hkuppy @42macroDDale @verdadcap Image
Read 18 tweets
Market participants are going ga-ga over past one & half year returns since March 2020 till now. They are analysing returns in Bits & Pieces.

I do not think many have even participated in this rally as most exited in March 2020, waiting for further corrections
They are conveniently forgetting recent past corrections and drawdown.

Lower the drawdown, faster the bounce backs
Ideal way to look at returns is as a continuous journey. That can give true picture of what Investors would have generated in any scheme.

In spite of euphoria - look at NIFTY Small or Mid Cap 100 returns from 01-01-2018 till 27-09-2021 + attached volatility v/s other DAAFs
Read 4 tweets
My thoughts on NFO of @KotakMF Multi Cap Scheme:

Post recategorizations of schemes, most erstwhile Multi Cap Schemes were converted to Flexi Cap schemes where Fund Managers can decide what Allocation to which Market cap bias.

Thanks to that, there are very few Multi Caps available now which allocates min 25% each to Large, Mid and Small Caps and balance 25% that can be at the discretion of the Fund Manager.
What is the benefit of Multi Caps?

1. It takes away Fund Manager bias of going overweight or underweight in any market Cap bias

2. Most Flexi Caps are overweight on Large Caps
Read 7 tweets
My interview with @MubinaKapasi on the Money Show on @ETNOWlive : what is #AssetAllocation and how does #DAAF fit into AA:

Currently it makes sense to do SIP/STP into DAAF and then switch to Equity on corrections

Don't worry it is my interview only😀😉
At this juncture if you have FOMO, you may regret in future. As Harry Markowitz said in his Thesis on Risk-Reward Tradeoff:

Our Value STP follows 1X, 3X, 100X formula:

Lumpsum in Liquid/Equity Saving and switch into:

1X - in DAAF in Red Zone (current)
3X - in Equity in Yellow Zone
100X - Equity in Green Zone
Read 7 tweets
Many have asked me about spate of IPOs and NFOs launches and my thoughts. Should they invest or not?

Another question: why are AMCs launching NFOs at expensive valuations?

My thoughts on this subject:
If you had bought 5kg of sugar from a grocer & you order another 2kgs next day, will the grocer not sell you more? They are in the business of selling you day to day groceries.

What and how much you need is your choice as a customer. You cannot blame the grocer for selling
Put differently:
Which medicine(scheme) needed for which patient(Investor) is job of a Doctor(MFD) or patient(DIY Investor). It is not job of Pharma Companies(AMCs).

Just because Pharma Cos repackage the medicines, does not mean patients should increase their dose
Read 8 tweets
Asset allocation refers to an investment strategy in which individuals divide their investment portfolios between different diverse asset classes to minimize investment risks.

There is no simple formula that can find the right asset allocation for every individual.

1/ An Portfolio Distribution is influenced by factors such as personal goals, level of risk tolerance and investment horizon.

As there are multiple options for investment, on the basis of risk, can be classified into 3 categories, "High Risk", "Medium Risk" & "Low Risk". Illustrative list of Assets
2/ "With great risk, comes great reward." - Thomas Jefferson.
But remember "For a low return on investment, the risks are also relatively low."
Read 13 tweets

We all wish to be #FI
Investing sensibly is the only way to achieve this.

Hence #AssetAllocation becomes important , as we need to, BOTH PROTECT & GROW OUR CAPITAL to meet our goals in life.

A basic thread in simple language for beginners.

If useful , pls do share 😇🙏

Asset Allocation is an Investment Portfolio technique .

It aims to mitigate the risk by distributing our investable surplus across different asset classes like Equity, Debt, Gold, Real Estate, MF, Cash or Alternates after Risk Profiling of the investor.

An example 👇


Every Asset class has its risks & it's impossible to predict which would fetch the best possible returns.

Imagine if one had invested only in Equities in 2007/ 2019 or in Real Estate at its peak in 2011 with a hefty loan with no shock absorber in place ! 🤷
Read 10 tweets
US tech stocks have been hit hard, as attention focuses on the underlying quality of themes like the migration to electric vehicles.
Yet this shakeup is also happening against the backdrop of a fast-changing investment environment due to a strengthening US growth outlook, rising inflationary pressure and an unnerved bond market which is driving yields higher.
In this video interview, Will Denyer seeks to unpack these dynamics in order to navigate a course through difficult trading conditions. #assetallocation #equities #us #stocks #bonds #economy
Read 3 tweets
While our February 18th monthly client call argument for rising #RealRates appeared prescient, we were surprised by the magnitude of last week’s #move and would expect a more benign evolution toward #equilibrium going forward.
Taking a stab at periodizing the past year: 1) in Feb/Mar 2020 the Covid crisis was priced into #markets, real #rates spiked higher, #inflation breakevens collapsed and #investors scrambled to raise #cash as the #SPX experienced its fastest 30% drawdown in history.
Then, 2) from Apr through Oct 2020 we witnessed the #market impact of monumental #monetary and #fiscal policy responses to the #crisis, as policymakers successfully sought to force #real rates down and restore #inflation expectations.
Read 10 tweets
It’s been an especially stormy start to the year for the UK, which finds itself at ground zero for the spread of a new and highly infectious strain of the coronavirus, even as it struggles to cope with withdrawal from the European Union’s single market and customs zone.
Yet the UK’s financial markets are performing relatively respectably year-to-date as investors focus on the UK’s strong vaccination performance and look ahead to the possibility of economic reopening and recovery.
In this video interview, Nick Andrews examines the forces at work and weighs the risks facing the UK economy and markets. #UK #Brexit #pound #sterling #assetallocation #EU #singlemarket
Read 3 tweets
President Joe Biden’s planned US$1.9trn fiscal support package for the US economy may provide a metaphorical shot in the arm for at least some emerging markets, partially offsetting the negative economic effects caused by the delayed rollout of actual coronavirus inoculations.
With US consumers likely to spend much of their cash handouts on imported goods, Biden’s package is good news for Asia’s emerging market exporters. Meanwhile, domestic demand in the emerging world is set to remain subdued through 2021.
In this video interview, Udith Sikand assesses the conflicting forces affecting emerging economies, and identifies this year’s potential winners and losers. #assetallocation #em #emergingmarkets #interview #asia #exporters
Read 3 tweets
* Some practical tips on #PersonalFinance & #Investment *

Met someone who lost heavily in markets( sizeable amt) which makes me write this thread .

DISCLAIMER : There are exceptions always.However the chances of us being in that exception is rare !🤷 Hence the thread.

Pls DON'T ENTER markets without ensuring you have
- An Emergency Fund in place
- A good comprehensive Life & Health insurance policy for all .
- Term Insurance ( especially if taken a house on loan)

More details given in the old tweet.

Consider investing in markets as money locked in ( like in a PPF account) for a few years atleast & THEN decide how much money you CAN AFFORD TO LOCK IN.
Else we may have to sell ( even a good)stock at lower price BECAUSE we need money urgently .
Read 14 tweets
#ETMONEY has been leading the charge in providing the most seamless MF investing experience. And now after 4 years & 11 million transactions, we wanted to look at how #Indians are investing and what changes have happened in these 4 years. Time for India Investment Report #2020
First up - The tale of States. While Maharashtra sits pretty on top in the list of top contributions by value, Uttar Pradesh, a relatively less obvious state takes second spot. We're proud to have made investing accessible to Indians in every nook & corner of this vast country🙂
In the second part of this tale of states, we analyzed Equity Allocation from each state. And this time it was the smaller states that came on top. That’s because as awareness about #MutualFunds grow, people from states like J&K are latching onto equities🥳
Read 11 tweets

Some pointers on #PersonalFinance
1) Highly #subjective - depends on earnings,savings & lifestyle. Don't clone approach . Take professional help, if needed.

2)Focus primarily on #skillsets in early years.Automatically #earnings increase. Big salary ,bigger savings.
3) Start #saving early on .
4) Incremental savings must be more than Incremental earnings.

5) Avoid #debt . But if necessary plan well & repay it early on . Beware of snowball effect.

6) Avoid instant #gratification. A lil' self restraint goes a long way in saving up .

7) #Leveraging is disastrous . Not advisable .

8) #ConcentratedPortfolio can backfire big time . Makes sense to go in for a diversified one.

9) #AssetAllocation is equally important .

10) #CreditCards if used sensibly are good ,else disastrous. Educate yourself.
Read 7 tweets
What are the best channels to #invest in if I want monthly #returns?
What can we teach #children about #financialindependence?
What is the right #assetallocation strategy?
Read 6 tweets
#Assetallocation changes as you near retirement. What if your equity #investments are stuck in a phase where the markets are battered?
Can I share #income by creating a trust?
How can an IT employee generate alternate sources of income?
Read 25 tweets
A v interesting data sheet from Mint on how returns from different assets have behaved since 2010 - a good enough time frame in the world of rapid disruption. My notes in this thread
.. (1/n) Image
1. Sabka time aayega - Each asset class ends up coming to the top slot and then after that sooner or later goes right at the bottom.

2. Gold - it has a negative correlation, i.e. if Gold is in extreme bull markets, Indian markets are not doing well.

.. (2/n)
E.g. 2010-11 Gold gave 24% & 29% and Indian markets were either flat or rutting. Same in 2019-2020.
3. Gold doesn't always glow. Three years 2013-2015 - worse asset class

3. Real estate has barely been able to touch 20%, contrary to the belief that it is a multibagger
.. (3/n)
Read 11 tweets
For the precious metal lovers out there. For ages, #gold has been considered as safe haeven investment option. In times of uncertainty, where trust is lost in most of the asset classes, Gold is considered as the only trust worthy option. In itself, it has no value, but .. (1/n)
Perceived value. You would have heard it - beauty lies in the eyes of the beholder. Same is with Gold. Banks, Govts, Hedge Funds and Investors all end up being in a gold buying frenzy when uncertain time comes in.. (2/n).
Back in 2012, I wrote this blog note on Gold. It is a reasonably researched post where I detailed upon what impacts Gold prices - both from demand and supply. It still has stood the test of time, except values hv changed
Read 8 tweets
Some take aways from the BoA 'Global Fund Manager Survey'...(1/5) HT @MillennialMacro
2/5 Global fund manager survey key takeaways...71% think the stock market is overvalued...While still heavily allocated to #US markets, the #EU is most favoured regional equity long & Euro expected to appreciate...#Investing #Macro ImageImageImage
3/5 Global funds managers #commodities allocation is the "highest overweight since July 2011"...Most favoured: #Eurozone, #Materials, #Tech, #Healthcare...Not Favoured: 'Value', Global #Banks, #Bonds, #UK & #Energy...#Investing #Macro #AssetAllocation ImageImage
Read 5 tweets
PPFAS NAV 13 Feb: 29.29 (Sensex/~42k)
PPFAS NAV 24th March: 20.15 (Sensex/25k)
PPFAS NAV 3rd July: 28.70 (Sensex/ 35k)

42% from bottom. While most has been saying it's because of Nasdaq, the game changer has been 13% odd cash and bets they took

#ppfas #assetallocation
They had around 12-13% cash. While Sensex is still 17% down from ath and Nasdaq at last ath, let's see how the cash helped

1./ ITC, took 5% punt
2./ They loaded on MCX, CSDL, averaged more on axis
3./ Moved out of nestle and picked Microsoft of almost same value

They also moved a 4% position in AMZN and further 2% in FB once it crashed to 160 odd. Didn't add a share in Google.They also took a quick trade in HDFC though can't figure out what for but it must have been bought pretty low and then made a good trade given HDFC was 10%
Read 10 tweets
Most of the rally at the longer end of the yield curve has already come about since the time @RBI started reducing policy rates. So, longer end of the #yield curve could thus prove less rewarding and risky (expected to encounter high #volatility) in the foreseeable #future. Image
- We may not see significant rally in longer duration funds.

- The rate cut would have limited impacted on prices & the yields in shorter duration #funds. (2) #mutualfunds #DebtFunds #debt #SaarthiZarooriHai #AssetAllocation
As govt. has raised its FY21 #borrowing limit by over 50% to ₹12 lakh crores from ₹7.8 lakh crores on account of COVID-19 #pandemic. Higher borrowing puts upward pressure on #bond #yields.
#mutualfunds #debt #DebtFunds #funds (3/3)
Read 3 tweets
Despite fluctuations amid the #pandemic, #China’s #financialmarket remains relatively stable & resilient compared with global financial market. Xiao Gang, CF40 Senior Fellow, believes China’s financial market has potential to become a center for global financial #assetallocation.
He says the market is basically equipped. This'll be vital for China’s economy and finance. Since the virus broke out, the safety, stability and profitability of #RMB assets are more evident. China should take the chance to build a global hub for financial #asset allocation.
However, coming with the huge benefits are huge risks and costs. The following proposals are made:

1. accelerate the market-oriented reform in the financial sector;

2. promote #RMB internationalization;
Read 4 tweets
Advisors can actually build their entire MF practice by only selling #DAAF and still give the best Investment Experience.
DAAF takes care of:
1. #AssetAllocation
2. Value based investing
3. BuyLow-SellHigh - profit booking
4. #DownsideProtection
5. Debt with Equity Taxation
6) No need to Time the Markets
7) No need for Exit strategy
8) over longer periods, outperforms Buy & Hold
9) In Bullish period -participates in Upside
10) Bearish Periods - protects Downside
11) stagnant periods still generates returns
12) use it as SIP, STP, Lumpsum
That's why I call it Aloo Ki Sabzi in Investment Thali:
1) can fit in any strategy
2) can be invested at any phase of markets
3) can be recommended for Senior citizens for regular cash flow thru SWP
4) ideal for any age group
Read 4 tweets

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