Asset Allocation Plans & Financial Planning

Automatic asset allocation is possible with asset allocation plans and they allow you to remain in the same risk level all through out your investment period. So when you clear the travel through that particular risk period, you have to change into another risk profile. Many people do not understand this process and get sticky about a fund.

Another thing is about the long term nature in which you have to look at these investments. They are not 'get rich quick' kind of lotteries.

Lottery or betting is an entertainment. It is for fun.
But investment is not for entertainment or fun, though it may be an outcome. The investment is longer term than that of a bet or lottery.

Schemes to look at are

1. UTI Variable Investment Plan


2. F T India Dynamic P/E Ratio Fund of Funds


3. ICICI Pru Dynamic equity Plan

The other alternative is The New Pension Scheme

Those who read this also read :

1. Asset Allocation Funds


2. Price Earning Funds & Financial Planning


3. 
   

Price Earning Funds & Financial Planning

Price earnings ratio captures how many times the Earnings per Share is covered by the Market Price for the share. It is a traditional measurement algorithm with no substitute available so far. One compares it with peers and takes a call on whether a share is reasonable priced or not and take buy/sell/hold decisions.


In a rising market P/E Funds give good performance while in a fluctuating or falling markets the Dividend yield funds give best rate of return. Dividend yield is the ratio between the Rupee dividend and price per share.

Somebody looking for full diversification should be holding both class for getting cash flows in all weather conditions.


The P/E funds available are:
a). Tata Equity P/E Fund
b). FT India Dynamic PE Ratio Fund of Funds (FTDPEF)
Equity component in the scheme is directly linked to levels of P/E of the NSE Nifty, one of the most popular indices of equity markets of India.

Weighted Average PE Ratio of NSE Nifty	Equity Component(%)	Debt Component(%)
Upto 12	90-100	0-10
12-16	70-90	10-30
16-20	50-70	30-50
20-24	30-50	50-70
24-28	10-30	70-90
Above 28	0-10	90-100

c).



Those who read this also read:
1. To sail through troubled times..
2. Full diversification