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Wealth Managemnet]

In: Computers and Technology

Submitted By tango221
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ASSET ALLOCATION BASED ON INVESTOR’S RISK PROFILING
The risk profiling score came to 66 out of hundred which interpret the investor as a wealth keeper or a conservative investor. Conservative investing strategy is that seeks to preserve an investment portfolio's value by investing in lower risk securities such as fixed-income and money market securities, and often blue-chip or large-cap equities.

Conservative

Risk/Return

Volatility: Low
Return potential: Low
After the risk profiling, Investor seems to be Income-oriented, conservative who are willing to accept only modest volatility limited growth. As the return potential is low, conservative investors look for a continuous source of income rather than growth.

SAVINGS/CASH
In Oder to meet the short term cash expenses it is always better to keep a certain portion of the total asset of the portfolio in the form of cash or savings account. More preferable is savings account because it can be withdrawn at any time and also will get interest.

Mutual Fund
Growth Fund
The main aim of these schemes is to provide capital appreciation over medium to long term to the investors. These schemes normally invest a major part of their fund in equities and are willing to bear short-term decline in value for possible future appreciation. Growth Schemes are also known as equity schemes.

MIP with Dividend option Monthly income plans with dividend option provides the investor an income in form of dividends. There is an option to receive this income monthly, quarterly, half-yearly and yearly. So investor has to choose the option at the time of buying the MIP. The company has to pay a dividend distribution tax of around 14% on the dividend before it reaches your hand, so returns reduce by that much and thus Dividend from MIPs is tax-free in the hand of investor.

FIXED DEPOSITS
Reinvest interest income
In an…...

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