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Asset Allocation 3.0
'Wealth Creation through Asset Allocation'
🧵👇
1/25
(Part1)
Picture Source:
thekickassentrepreneur.com
'Wealth Creation through Asset Allocation'
🧵👇
1/25
(Part1)
Picture Source:
thekickassentrepreneur.com
2
Definition
Asset- Class: 'Its an instrument available for your Income savings to invest & compound over a period of time'
Asset- Allocation:
'Asset allocation is the process of investing across diversified - Asset Classes'
Definition
Asset- Class: 'Its an instrument available for your Income savings to invest & compound over a period of time'
Asset- Allocation:
'Asset allocation is the process of investing across diversified - Asset Classes'
3
Model Portfolios👇
❶ Real_ Estate Lovers
❷ My Favorite - Equity centric & Crypto enthu
❸ Invest in 'Businesses' - your Uncle's or Friend's🙂
If you are staring of your career - focus on 'Blue Block'
Model Portfolios👇
❶ Real_ Estate Lovers
❷ My Favorite - Equity centric & Crypto enthu
❸ Invest in 'Businesses' - your Uncle's or Friend's🙂
If you are staring of your career - focus on 'Blue Block'
4
Pre-requisites👇
A. Tell your Mind:
❶Wealth Creation –a slow process
❷Save & Invest –Continuous Process
❸Greed❌
❹Short-cut❌
B. Buy a Term Insurance – Min 1 Cr
C. Buy enough medical insurance outside your office
D. Pre-close all investments linked with Insurance
Pre-requisites👇
A. Tell your Mind:
❶Wealth Creation –a slow process
❷Save & Invest –Continuous Process
❸Greed❌
❹Short-cut❌
B. Buy a Term Insurance – Min 1 Cr
C. Buy enough medical insurance outside your office
D. Pre-close all investments linked with Insurance
5
E. Say No👇
❶MLM
❷Chit
❸Cautious investing in Relatives/ Friends Businesses
❹Not Legit Financing
F. Understand of Power of Compunding
G. Positive & Believe in India Growth Story
Let’s begin the journey👇🕺💃
E. Say No👇
❶MLM
❷Chit
❸Cautious investing in Relatives/ Friends Businesses
❹Not Legit Financing
F. Understand of Power of Compunding
G. Positive & Believe in India Growth Story
Let’s begin the journey👇🕺💃
6
Why I said 'Wealth Creation is a Slow Process'👇
Why I said 'Wealth Creation is a Slow Process'👇
7
Power of Compounding -
For me its a Heart of 'Wealth Creation'
Remeber what Einstein said once: “Einstein called it the eighth wonder of the world.”
If you are still not convinced yet read this 'Puzzle'👇
Power of Compounding -
For me its a Heart of 'Wealth Creation'
Remeber what Einstein said once: “Einstein called it the eighth wonder of the world.”
If you are still not convinced yet read this 'Puzzle'👇
8
Types of Asset Classes👇
❶Real Estate
❷Gold & Silver
❸Debt
❹PF, VPF & NPS
❺Cash
❻Start-ups
❼Cryptocurrency
❽Equity
👇
Types of Asset Classes👇
❶Real Estate
❷Gold & Silver
❸Debt
❹PF, VPF & NPS
❺Cash
❻Start-ups
❼Cryptocurrency
❽Equity
👇
9
We now have 8 Asset Classes, let us understand what kind of returns these Asset-classes give⤵️
(my apology for showing Equity with Higher Returns - dont abuse me)
We now have 8 Asset Classes, let us understand what kind of returns these Asset-classes give⤵️
(my apology for showing Equity with Higher Returns - dont abuse me)
10
What happens to Rs 1,000 after 12 months - post Inflation Adjusted⤵️
(dont get carried away by RE returns - returns mentioned there are ave global data. In India rental yield/ annum is 3-4% only)
What happens to Rs 1,000 after 12 months - post Inflation Adjusted⤵️
(dont get carried away by RE returns - returns mentioned there are ave global data. In India rental yield/ annum is 3-4% only)
11
Asset Class1: Equity/ Stock Market
Definitio
Equity represents the value that would be returned to a company’s shareholders if all of the assets were liquidated.
Equity Investment: Investing in ‘Stock Market’
Asset Class1: Equity/ Stock Market
Definitio
Equity represents the value that would be returned to a company’s shareholders if all of the assets were liquidated.
Equity Investment: Investing in ‘Stock Market’
12
What percentage should go into Equity Asset Class
There is a crude rule to invest in Stock Market⤵️
Equity Allocation: (100 – Age).
For me it suggests, I should be investing more than 50% in Equity.
you can guess my age🙂
What percentage should go into Equity Asset Class
There is a crude rule to invest in Stock Market⤵️
Equity Allocation: (100 – Age).
For me it suggests, I should be investing more than 50% in Equity.
you can guess my age🙂
13
Equity Investment Progression:
Start With MFs: Index Funds or Flexi-cap Mutual Funds
⬇️⏬⬇️
Direct Stocks
Equity Investment Progression:
Start With MFs: Index Funds or Flexi-cap Mutual Funds
⬇️⏬⬇️
Direct Stocks
14
"Mutual Funds"
Types of MFs:
❶Index Funds
❷Thematic & Sector Funds
❸Multi & Flexi-cap Funds
❹ELSS – Equity Linked Savings Scheme
❺Hybrid Funds
❻Small-cap, Mid-Cap & Large-cap
Read below 🧵 on - 'How to Invest in Mutual Funds'⤵️
(Must Read)
"Mutual Funds"
Types of MFs:
❶Index Funds
❷Thematic & Sector Funds
❸Multi & Flexi-cap Funds
❹ELSS – Equity Linked Savings Scheme
❺Hybrid Funds
❻Small-cap, Mid-Cap & Large-cap
Read below 🧵 on - 'How to Invest in Mutual Funds'⤵️
(Must Read)
15
Confused 'Index Funds' or 'Active Funds'?
Data - Data, Read Below ⤵️
Confused 'Index Funds' or 'Active Funds'?
Data - Data, Read Below ⤵️
16
More on Funds⤵️
More on Funds⤵️
17
"Investing in Direct Stocks"
Getting bored to type, read below screen grab for definition & sample portfolio allocation⤵️
"Investing in Direct Stocks"
Getting bored to type, read below screen grab for definition & sample portfolio allocation⤵️
18
How to pick direct stocks & build a solid portfolio - many learning materials are available on YouTube - please read at your convenient.
What Equity does to Normal People⤵️
How to pick direct stocks & build a solid portfolio - many learning materials are available on YouTube - please read at your convenient.
What Equity does to Normal People⤵️
19
Wealth Creation via Stock Market (Direct Stocks) requires the following:
1. Quality of Businesses
2. Time - Patience (repeating)
3. Power of Compunding (repeating)
#investing
Wealth Creation via Stock Market (Direct Stocks) requires the following:
1. Quality of Businesses
2. Time - Patience (repeating)
3. Power of Compunding (repeating)
#investing
20
Asset Class2: Real Estate 🏘
The most non standardized & illiquid asset class. Returns 6-8% if you are lucky.. .
❶RE Mafia
❷Initial Capital
❸Poor CAGR
❹Illiquid
❺Cheating
❻Taxes/ Maintenance
Asset Class2: Real Estate 🏘
The most non standardized & illiquid asset class. Returns 6-8% if you are lucky.. .
❶RE Mafia
❷Initial Capital
❸Poor CAGR
❹Illiquid
❺Cheating
❻Taxes/ Maintenance
21
And other headaches – paying taxes, maintenance, encroachment, searching tenants & resale.
My Real Estate Investments are:
⓵ Flat to stay
⓶ 2-5 acres of farm-land to spend my holidays
And other headaches – paying taxes, maintenance, encroachment, searching tenants & resale.
My Real Estate Investments are:
⓵ Flat to stay
⓶ 2-5 acres of farm-land to spend my holidays
22
Real Estate vs Equity Investments⤵️
Real Estate vs Equity Investments⤵️
23
Asset-class3: Gold & Silver
Decent percentage in Gold & Silver is must..
How to buy Gold/ Silver
❶Physical – Jewelry
❷Mutual Fund
❸Bonds
❹ETF
Most investors prefer Jewelry & paper gold & silver.
Asset-class3: Gold & Silver
Decent percentage in Gold & Silver is must..
How to buy Gold/ Silver
❶Physical – Jewelry
❷Mutual Fund
❸Bonds
❹ETF
Most investors prefer Jewelry & paper gold & silver.
24
I wish to go with Physical Gold - Coins & Silver Bar - it serve my 2 purposes:
❶ Investment in precious metals
❷ Keep my Wife & Daughter Happy!!
I wish to go with Physical Gold - Coins & Silver Bar - it serve my 2 purposes:
❶ Investment in precious metals
❷ Keep my Wife & Daughter Happy!!
25
Asset-class4: Debt – Gilt, Short Term, Income, Maturity & Liquid💸
Debt funds invest in securities which generate fixed income like treasury bills, corporate bonds, commercial papers, government securities, & many other money mkt instruments.
Details:
groww.in
Asset-class4: Debt – Gilt, Short Term, Income, Maturity & Liquid💸
Debt funds invest in securities which generate fixed income like treasury bills, corporate bonds, commercial papers, government securities, & many other money mkt instruments.
Details:
groww.in
26
Asset Allocation 3.0
Continue..
(Part-2)
Types of Debt Funds:
Liquid
Money Market
Dynamic Bond
Corporate Bond
Gilt
Credit Risk
Low, Medium & Long Duration
Ultra Short
Overnight etc.
Asset Allocation 3.0
Continue..
(Part-2)
Types of Debt Funds:
Liquid
Money Market
Dynamic Bond
Corporate Bond
Gilt
Credit Risk
Low, Medium & Long Duration
Ultra Short
Overnight etc.
Asset-class5: PF/ VPF/ NPS
What is Provident Fund: an investment fund contributed to by employees, employers.
VPF is the voluntary fund contribution from the employee towards his provident fund a/c.
National Pension Scheme is a social security initiative
cleartax.in
What is Provident Fund: an investment fund contributed to by employees, employers.
VPF is the voluntary fund contribution from the employee towards his provident fund a/c.
National Pension Scheme is a social security initiative
cleartax.in
Asset-class6: Cash
Though this is not considered as an Asset-Class but its must to have in our Portfolio.
Where should I keep my Cash? Definitely not beneath the mattresses unless its a black money.
❶Saving A/c
❷FDs
❸Liquid Fund
👉you have access to this funds in“No Time”
Though this is not considered as an Asset-Class but its must to have in our Portfolio.
Where should I keep my Cash? Definitely not beneath the mattresses unless its a black money.
❶Saving A/c
❷FDs
❸Liquid Fund
👉you have access to this funds in“No Time”
Asset-class7: Start-ups
Definition:
“A startup is a venture that is initiated by its founders around an idea or a problem with a potential for significant business opportunity and impact.”
More details:
angel.co
Definition:
“A startup is a venture that is initiated by its founders around an idea or a problem with a potential for significant business opportunity and impact.”
More details:
angel.co
30
Remember our H'ble PM's statement on Start-ups⤵️
Remember our H'ble PM's statement on Start-ups⤵️
31
Asset-class8: Cryptocurrency
👉A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.
I recently started investing in Matic, ETH, Bitcoin & Sandbox.
Asset-class8: Cryptocurrency
👉A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.
I recently started investing in Matic, ETH, Bitcoin & Sandbox.
32
Reiterating: Dont Mix Insurance & Investments⤵️
Reiterating: Dont Mix Insurance & Investments⤵️
33
Some Books to Read👇
Some Books to Read👇
34
Dont Forget to follow the following twitter handles⤵️
Dont Forget to follow the following twitter handles⤵️
35
This one⤵️
This one⤵️
36
Behavioral Psychology⤵️
Behavioral Psychology⤵️
37
First Milestone⤵️
First Milestone⤵️
38
39
Please Tell you kids⤵️
Please Tell you kids⤵️
40
🙏
🙏
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