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Asset Allocation

Asset allocation is not mere diversification. It is regularly reviewing & rebalancing your portfolio according to current market conditions. A prudent asset allocation helps you makes the most of your money in the long-run. <br>Know all about prudent financial planning with asset allocation.<br>

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Asset Allocation

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  1. Prudent Financial Planning with Right Asset Allocation

  2. Now let’s understand Savings First.. YOUR MONEY YOUR MONEY CYCLE CYCLE Saving Before Spending, Saving Before Spending, is the right way of financial planning.

  3. What are your financial goals? Dream Holiday Dream Holiday A Car A Car House House Child’s Marriage Child’s Marriage Retirement Retirement Child’s Education Defining your goal is the first step towards planning.

  4. Put a number to it, priorities & give a timeframe DREAM DREAM HOLIDAY HOLIDAY CHILD’S CHILD’S EDUCATION EDUCATION CHILD’S CHILD’S MARRIAGE MARRIAGE A CAR A CAR HOUSE HOUSE RETIREMENT RETIREMENT ₹2L 2L ₹6L 6L ₹60L 60L ₹20L 20L ₹30L 30L ₹2.5Cr. 2.5Cr. 12 Months 12 Months 2 Years 2 Years 5 Years 5 Years 15 Years 15 Years 25 Years 25 Years 25 Years 25 Years Short Term Plan Short Term Plan Medium Term Plan Medium Term Plan Long Term Plan Long Term Plan Above number is illustrative purpose only

  5. Needs and Investment Options Short Term Needs Short Term Needs 1-12 Months Medium Term Needs Medium Term Needs 12-60 Months Long Term Needs Long Term Needs More than 60 Months OBJECTIVE OBJECTIVE • Safety of Principal critical • Minimal volatility as one may need the money anytime • Better Returns, but capital to be safe • Little volatility to be expected • Returns have to beat inflation • Volatility can be blunted with time Options Options to to Consider Consider • Bank Fixed Deposit • Bank Recurring Deposit • Liquid / Money Market Funds • Short Term Debt Funds • Direct Equities • Equity Diversifies Mutual Funds • Real Estate • EFP & PPF • Bank Fixed Deposits • Debt Funds • Corporate Fixed Deposits

  6. Investment avenues to achieve your goal In addition to FD there are other investment to consider to achieve your goals In addition to FD there are other investment to consider to achieve your goals RD/FD/Debt RD/FD/Debt Gold/Gold ETFs Gold/Gold ETFs Equities/MF Equities/MF Real Estate Real Estate Amount Amount Starts at ₹500 Starts at ₹500 Starts at ₹500 Huge Lumpsum Amount Volatility Volatility Very Low Volatility Low-Medium Volatility Medium-high Volatility Low Volatility Return Return 5-8% pa 8-9 %+ in a good year 12-15%+ in a good year 3-4% Rental Return; 5-10% Annual Return in a good year Taxation Taxation Interest Taxable Gain Taxable Gain Tax-free upto ₹1 lakh Gain Taxable Choose your investments depending on your Age, Risk appetite and Wealth Goals. The comparison with Fixed Deposits has been given for the purpose of the general information only and not a recommendation to invest. Investments in Mutual Funds should not be construed as a promise, guarantee on or a forecast of any minimum returns. Unlike Fixed Deposit with Banks there is no capital protection guarantee or assurance of any return in Mutual Funds. Investments in Mutual Funds as compared to Fixed deposit carry moderately high risk, different tax treatment and subject to market risk and any investment decision needs to be taken only after consulting the Tax Consultant or Financial Advisor

  7. But consider inflation in your plans 1990* 1990* 2000 2000 2010 2010 2015 2015 2020 2020 CAGR CAGR Consumer Basket Consumer Basket TOTAL SPENDING PER ANNUM 23,759 68,923 151,279 280,064 427,619 10.1% Price of gold, INR/10 grams 3,409 4,528 18,268 26,335 50,104 9.4% Units ( Grams) of gold to consume my basket 70 152 83 106 85 BSE SENSEX 730 4,659 15,585 26,557 47,751 14.9% Units of BSE-30 Index to consume my basket 33 15 10 11 9 Fixed Deposit Basket Index Value (Value of initial investment Jan 1, 1990 =1000) (SBI 1 Year Deposit Rate)* Units of FD Basket to consume my basket 1,064 2,220 3,550 4,628 5,814 6.0% 22 31 43 61 73 • Quarterly compounding and Tax rate on Fixed Deposit assumed to be 30% • Data as on December 2020. Inflation affects your savings and returns. Make sure your goals are aligned to inflation. Past Performance may or may not sustained in Past Performance may or may not sustained in future future

  8. What is Asset Allocation? Asset allocation involves dividing an investment portfolio among different asset categories like equities, bonds, property, commodities and cash Summer Monsoon

  9. Asset Allocation • Helps you override emotions • Helps you overcome biases • Helps to tide over market cycles Past performance May or May not sustained in future Past performance May or May not sustained in future

  10. Benefits of Asset Allocation Reduced Risk Reduced Risk: A properly allocated portfolio strives to lower volatility or fluctuation in returns, by simultaneously spreading market risk across several asset class categories More Consistent returns More Consistent returns: By Investing in a variety of asset class you can improve your chance of participating in market gains and lessen the impact of poorly performing asset class categories on overall results A Greater focus on Long A Greater focus on Long– –Term goals goals: A properly allocated portfolio is designed to alleviate the need to constantly adjust investment positions to chase market trends. It can also help reduce the urge to buy or sell in response to short – term market swings. Term

  11. Importance of right asset allocation Retirement Corpus Required Rs. 2.20 Cr. Rs. 2.20 Cr. Age Time to Retire 20 years 20 years 35 years 35 years Mr. A & Mr. B Mr. A & Mr. B Investment Allocation Mr. A Corpus (Rs) Mr. B Corpus (Rs) Equities 30% 60% 95.54 L 1.91 Cr Debt & Cash 60% 30% 82.46 L 41.23 L Gold 10% 10% 10.93 L 10.93 L Total 100% 100% 1.88 Cr 2.43 Cr Likely to achieve the goal The above illustration is calculated for monthly SIP of Rs.24,000/ The above illustration is calculated for monthly SIP of Rs.24,000/- -. Annual Return Assumed Equity . Annual Return Assumed Equity – – 10%, 10%, Debt Debt – – 8% and Gold 8% and Gold – – 6%. The above corpus are pre 6%. The above corpus are pre- -tax. tax. The above table is for illustrative purpose only. The information is not to be considered as investment advice/ recommendation. Investment through SIP does not guarantee any return or protection of capital.

  12. Asset Classes Grow & Contract in Cycles 100% 80% Imagine someone holding an all equity portfolio in 2008 holding none in the equity rally that followed? holding none in the equity rally that followed? all equity portfolio in 2008, , or 60% 40% 20% 0% -20% -40% -60% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Equity Gold Bonds Source: Bloomberg Source: Bloomberg Data as on December 2020 Data as on December 2020 Past Performance may or may not sustained in future Past Performance may or may not sustained in future

  13. 13 Ignore Asset Allocation at your own Peril There have been years when equity markets had a brilliant run, years when only bonds were dependable, and years when gold shined the brightest, and these periods did not typically overlap 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 2021* 2021* Sensex Sensex 49% 49% Sensex Sensex 49% 49% Gold Gold 26% 26% Sensex Sensex 83% 83% Gold Gold 23% 23% Gold Gold 32% 32% Sensex Sensex 28% 28% Sensex Sensex 11% 11% Sensex Sensex 32% 32% Bonds Bonds 9% 9% Bonds Bonds 13% 13% Sensex Sensex 30% 30% Gold Gold 8% 8% Gold Gold 16% 16% Gold Gold 28% 28% Sensex Sensex 4 4% % Gold Gold 20% 20% Gold Gold 16% 16% Bonds Bonds 9% 9% Gold Gold 24% 24% Sensex Sensex 19% 19% Bonds Bonds 7% 7% Gold Gold 12% 12% Bonds Bonds 4% 4% Bonds Bonds 14% 14% Sensex Sensex - -4% 4% Gold Gold 11% 11% Gold Gold 5% 5% Sensex Sensex 7% 7% Sensex Sensex 14% 14% Bonds Bonds 17% 17% Bonds Bonds - -0.5% 0.5% Bonds Bonds 4% 4% Bonds Bonds 7% 7% Sensex Sensex - -52% 52% Bonds Bonds 4% 4% Bonds Bonds 5% 5% Sensex Sensex - -24% 24% Bonds Bonds 9% 9% Gold Gold - -5% 5% Gold Gold - -8% 8% Gold Gold - -7% 7% Sensex Sensex 3% 3% Bonds Bonds 5% 5% Bonds Bonds 6% 6% Bonds Bonds 11% 11% Sensex Sensex 12% 12% Gold Gold - -10% 10% Past performance may or may not sustained in future Past performance may or may not sustained in future calendar year from top to bottom The chart ranks the best to worst performing indexes per The chart ranks the best to worst performing indexes per calendar year from top to bottom *Data as of *Data as of March March 2021 2021 Past performance may or may not be sustained in future. Past performance may or may not be sustained in future. Based on S&P BSE Sensex; Domestic Gold prices and Based on S&P BSE Sensex; Domestic Gold prices and CRISIL Composite Bond Fund Index CRISIL Composite Bond Fund Index Imagine someone holding an all equity portfolio in 2008, or holding none in the equity rally that followed? Source: Source: Bloomberg Bloomberg

  14. 14 Benefits of Diversification If you compound your money at 12% per year there are chances that you are better off than an investor who makes 25% in one year and loses 20% in the next Risk Risk- -Return Return Equity +Debt Equity +Debt +Gold +Gold * * Equity + Debt Equity + Debt ** ** Equity Equity Debt Debt Gold Gold 11.28% 11.14% 12.66% 7.37% 12.00% CAGR 9.48% 13.64% 22.31% 3.26% 17.38% Annualized SD -15.65% -22.50% -36.81% -5.38% -28.68% VAR -21.43% -36.08% -56.17% -6.29% -25.22% Maximum Drawdown 0.5678 0.3844 0.3032 0.4515 0.3515 Sharpe Ratio Time frame is November 2004 to December 2020. The period is taken from 2004 since the asset allocation weights are calculated based on normalizing the historical monthly equity and debt indicators. Given the normalization time frame used in the strategy, data availability for certain parameters beyond the time frame analyzed was a constraint. Compiled by Quantum AMC *Equity-Debt-Gold in ratio of 40-40-20. **Equity-Debt dynamically allocated in 80-20 range Based on Sensex TRI, Crisil Composite Bond fund index, and Domestic Gold Prices Note: Past performance may or may not be sustained in the future The most diversified strategy yields similar returns with the lower volatility, compared to a pure equity strategy

  15. Phases of our lives Family Responsibilities Young & Carefree PLAY PLAY PLAY PLAY INVESTMENT INVESTMENT INVESTMENT INVESTMENT SACRED MONEY SACRED MONEY SACRED MONEY SACRED MONEY

  16. The above table is for illustrative purpose only. The information is not to be considered as investment advice/ recommendation. Investment through SIP does not guarantee any return or protection of capital.

  17. Create an Emergency Fund Unplanned Unplanned Expenses Expenses Natural Natural Calamities Calamities Job Loss Job Loss Hospital Hospital Expenses Expenses Sudden Loss of Sudden Loss of Income Income Keep 6-12 months of expenses in Liquid Fund, Bank Fixed Deposit so that It can be withdrawn immediately.

  18. Suggested Fund Allocation 12-80-20 Approach Emergency Funds equivalent to 12 month expenses. 20% in gold funds 80% in equity funds Please note that the above is the suggested fund allocation only and is not to be considered as investment advice/ recommendation. Please seek independent professional advice and arrive at an informed investment decision before making any investments.

  19. Our Suggested Allocation

  20. Equity generally works best in long term Longer the tenure, better the return Longer the tenure, better the return As the Markets are cyclic As the Markets are cyclic BULL RUN BULL RUN Euphoria Maximum Maximum Risk Risk Suspicion Optimism Maximum Maximum Opportunity Opportunity Panic Fear Depression BEAR PHASE BEAR PHASE

  21. Start Your Journey with us

  22. Our Journey so Far • Quantum Gold Savings Fund • India’s first fully paperless Online Investing Platform • Quantum Dynamic Bond Fund • Transactions through Email, WhatsApp & Fax • Quantum Gold Fund • Quantum Nifty ETF • Quantum Tax Saving Fund • Set up Quantum AMC • Launch of Regular Plans 2005 2005 2006 2006 2008 2008 2009 2009 2011 2011 2012 2012 2015 2015 2016 2016 2017 2017 2019 2019 • Quantum Long Term Equity Value Fund • Quantum Liquid Fund • Quantum Equity Fund of Funds • “Path to Profit” Launched • Quantum Multi Asset Fund of Funds • Quantum Long Term Equity Fund completes 10-year track record • Quantum India ESG Equity Fund

  23. What we offer Direct to Investor Direct to Investor Focused on low cost approach. Simple range of funds Simple range of funds No confusion for investors Disciplined Research and Disciplined Research and Investment Process Investment Process Team-driven, no “star” fund managers. Staying the course, no Staying the course, no short cuts short cuts Asset managers, not asset gatherers.

  24. Mr. Mr. Sorbh Gupta Sorbh Gupta Work experience: 15.9 years. He has been managing this fund Since December1, 2020. Mr. Nilesh Shetty Mr. Nilesh Shetty Work experience: 16 years. He has been managing this fund Since March 28, 2011. Fund Fund Manager Manager 01 01 Category of Category of Scheme Scheme Value Fund Quantum Quantum Long Term Long Term Equity Value Equity Value Fund Fund QLTEVF uses bottom-up stock selection process used to minimize risk. QLTEVF Follows disciplined research and investment process. QLTEVF has a low portfolio turnover. QLTEVF holds cash when stock are overvalued - no derivatives and no hedging. QLTEVF contains a well-balanced portfolio: typically 25 to 40 stocks, across sector. Features Features Retirement. Child’s Education. Child’s Marriage. Wealth Creation. Useful for Useful for

  25. Fund Fund Manager Manager Mr. Chirag Mehta Mr. Chirag Mehta Work experience: 19 years. He has been managing this fund since November 1, 2013. Category of Category of Scheme Scheme 02 02 Fund of Funds Domestic. Exposure to congruous and diligent performer from a cluttered equity fund universe of approximately 500 funds. The risk of wrong selection of funds is reduced as a basket of the finest schemes is chosen with the research & expertise of Quantum. Single manager risk is eliminated as your money is exposed to diverse fund management styles. You can gain exposure to a basket of 6-7 diversified equity schemes with a mere 500 rupees. No hassles of making and tracking multiple investments. A single NAV is all you need to check. The fund can rebalance and reallocate your money from underperforming schemes to better. performing ones in a more tax efficient way. Quantum Quantum Equity Fund Equity Fund of Funds of Funds Features Features Useful for Useful for Long term capital appreciation.

  26. Mr. Chirag Mehta Mr. Chirag Mehta Work experience: 19 years. Ms. Sneha Joshi Ms. Sneha Joshi Work experience: 7 years. Both have been managing the fund since July 12, 2019. Fund Fund Manager Manager Category of Category of Scheme Scheme 03 03 Thematic Scheme. Quantum Quantum India ESG India ESG Equity Fund Equity Fund Offers an avenue to invest in businesses adhering to sustainable practices that will drive long term performance. Invests based on a comprehensive in-house proprietary research on Environment, Social and Governance aspects. Offers a well-diversified exposure to good quality and sustainable companies with relatively low volatility and downside risk. Features Features Useful for Useful for Long term capital appreciation.

  27. Fund Fund Manager Manager Mr Mr. . Sorbh Gupta Sorbh Gupta Work experience: 15.9 years. He has been managing this fund Since October 1, 2016. Category of Category of Scheme Scheme 04 04 Equity Linked Saving Scheme. Quantum Quantum Tax Saving Tax Saving Fund Fund QTSF optimizes tax saving under Section 80C. QTSF minimizes risk by pursuing bottom-up stock selection. QTSF has a lower portfolio turnover. QTSF holds cash when stocks are overvalued - no derivatives and no hedging. QTSF follows a value investment strategy. Features Features Useful for Useful for Long term capital appreciation.

  28. Mr. Chirag Mehta Mr. Chirag Mehta Work experience: 19 years. Mr. Nilesh Shetty Mr. Nilesh Shetty Work experience: 16 years. Both have been managing this fund since July 11, 2012. Fund Fund Manager Manager Category of Category of Scheme Scheme 05 05 Fund of Funds Domestic. Diversifies across asset classes - which mitigates risk inherent of a particular asset class and provides risk adjusted returns. Reduces dependency on a single asset class to generate returns. No need to time markets. Invest in peace - the Fund manager strategically positions the portfolio to generate optimal returns while watching risks. Follows regular rebalancing approach within each asset class which allows Investors to "buy-low sell-high”. Better and a more tax efficient option for investors who park their money in long term #FDs (3 years and above). Aims at reducing volatility of returns. Quantum Quantum Multi Asset Multi Asset Fund of Fund of Funds Funds Features Features Long term capital appreciation and current income. Useful for Useful for

  29. Fund Fund Manager Manager Mr. Pankaj Pathak Mr. Pankaj Pathak Work experience: 11.6 years. He has been managing this fund since March 01, 2017. 06 06 Category of Category of Scheme Scheme Liquid Fund. Quantum Quantum Liquid Fund Liquid Fund Invested in government securities treasury bills and AAA/A1 rated PSUs No private corporate credit risks. Entire portfolio is marked-to-market daily to ensure the declared NAV is “real” Disciplined asset liability management. Disciplined proprietary research and investment process. Weekly disclosure of portfolio. Features Features Useful for Useful for Short term investment and liquidity.

  30. Mr. Chirag Mehta Mr. Chirag Mehta Work experience: 19 years. He has been managing this fund since May 19, 2011. Ms. Ghazal Jain Ms. Ghazal Jain Work experience: 4 years. She has been managing this fund since June 2, 2020. Fund Fund Manager Manager 07 07 Category of Category of Scheme Scheme Fund of Funds Domestic. Quantum Gold Quantum Gold Savings Fund Savings Fund Helps to diversify your Investments in gold. Enables investments in gold through SIP or STP of as little as Rs 500/month. Does not require a demat account as is the case with Gold ETFs. Does away with problems like storage & theft as the fund house takes care of all risks of storage & safety for a minimal expense ratio. Ensures quality of gold is up to the mark as it invests in Quantum Gold Fund where the gold is sourced from London Bullion Market Association approved refiners. Features Features Useful for Useful for For diversification and long-term capital appreciation.

  31. And Investors have reposed their faith on us YoY Active Investors 60,000 55,123 53,070 51,022 50,000 46,246 44,156 38,606 40,000 38,065 32,557 29,332 30,000 19,405 20,000 11,566 10,000 6,162 3,664 1,326 1,039 528 - Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21

  32. Disclaimer – Terms of Use The data in this presentation are meant for general reading purpose only and are not meant to serve as a professional guide/investment advice for the readers. This presentation has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been suggested or offered based upon the information provided herein, due care has been taken to endeavor that the facts are accurate and reasonable as on date. Quantum AMC shall make modifications and alterations to the performance and related data from time to time as may be required as per SEBI Mutual Fund Regulations. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investment. None of the Sponsors, the Investment Manager, the Trustee, their respective Directors, Employees, Affiliates or Representatives shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the data/information/opinions contained in this presentation. The Quantum AMC shall make modifications and alterations to the performance and related data from time to time as may be required. Please Please visit guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme. Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-). Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956. visit – www.QuantumMF.com to read scheme specific risk factors. Investors in the Scheme are not being offered a 29 29th thApril April 2021 Mutual fund investments are subject to market risks, read all scheme related documents carefully Mutual fund investments are subject to market risks, read all scheme related documents carefully. . 2021

  33. For additional information, please contact: For additional information, please contact: Sandeep Bhosle Sandeep Bhosle AVP AVP- - Customer Interaction Customer Interaction Email: Email: SandeepB SandeepB@QuantumAMC.com @QuantumAMC.com Mobile Mobile: +91- 98209 98209- -43101 Office Office :+91 :+91- -22 22- -6144 6144- -7804 Fax Fax :+91 :+91- -22 22- -2285 2285- -4318 4318 Website Website: www.QuantumAMC.com : www.QuantumAMC.com 43101 7804 Quantum Quantum Asset Hoechst House Hoechst House, , 6th Nariman Nariman Point Point Mumbai Mumbai- -400021, 400021, India Asset Management Management Company 6th Floor Floor, , Company Private Private Limited Limited India

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