Everything About Asset Allocation: 10 Key Takeaways

2 minutes read

Without a goal, there cannot be a vehicle chosen to reach that goal, that’s the word from PPFAS Mutual Fund’s Jayant Pai, who featured on the first episode of Winvesta’s brand new offering – The Winvesta Insights Podcast.

Pai, who is the head of Product and Marketing at PPFAS, spoke about the different facets of asset allocation – from goal-based investing to diversification and also about rebalancing an individual’s portfolio.

“People do not want to hand over money to some stranger. I know of people who say they don’t mind losing money themselves but don’t want someone else to lose it for them.” Pai shared his views on the biases that may affect an individual towards reaching his / her goal.

  • Here are 10 key takeaways from that interaction:
  • The Asset Tripod – Liquidity, Return of Capital, Return on Capital
  • There is no ideal asset allocation strategy
  • Need to wean investors away from prejudices, blind spots which may act as a hindrance to the goal
  • You are either an owner, creditor, or renter – the rest are just vehicles to achieve your goal
  • People are less concerned about growth, as compared to the preservation of value
  • People are understanding that markets are too complex and hence hand over money to fund managers to benefit from equities
  • The whole aim of international diversification is to reduce the country-specific risk
  • Just as there is no ideal asset allocation strategy, there is no ideal time to re-balance your portfolio either
  • Investors need to first be educated about the importance of debt reduction
  • Without knowing your destination, you cannot choose the vehicle to reach there!

To listen to the entire episode, click here.The Winvesta Insights Podcast is available on multiple platforms like Apple Podcasts, Google Podcasts, Spotify, Anchor, Radio Public, Breaker, among others.

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All content provided by Winvesta India Technologies Ltd. is for informational and educational purposes only and is not meant to represent trade or investment recommendations. Remember capital is at risk. Terms & Conditions apply. 

Hormaz Fatakia

Contributed by Hormaz Fatakia

Hormaz is the Financial Content Lead at Winvesta. Before Winvesta, Hormaz worked at Bloomberg Quint where he was a senior writer.

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