Risk Based Portfolio

If you prefer investing in strategies that are designed specifically to match the level of risk you are comfortable taking on in your account, then Risk-Based Portfolios may be a good fit for you. You can select an Very Aggressive , Aggressive, Moderate, or conservative track, depending on your risk tolerance and time horizon.

Also, the risk profile of the investor would change based on his age. Thus, for an investor between the age of 45 – 60 years, his investment decisions would be relatively risk - averse as compared to a young investor between the age of 20 – 35 years.

Hence, in order to map the proposed allocation of funds in different categories with the investor’s risk profile, an asset allocation model has been formulated for all type of investors. The below mentioned model is based on age – investment principle, which recommends that the portion of relatively less risky asset class of an investor’s portfolio should be equal to his age and the balance should be invested in relatively more risky asset class. For example, a 30 year old investor should invest 30% in relatively less risky asset class and 70% in relatively more risky asset class.

How much can you tolerate risk to earn returns?

If you know this, you can choose from our array of Experts pre-designed portfolios for the risk-taking kind as well as for the risk-averse ones.

 

Age Range Equity Debt Portfolio
25 - 35 75% - 80% 15% - 20% Very Aggressive
35 - 45 65% - 70% 30% - 35% Aggressive
45 - 55 55% - 60% 40% - 45% Moderately Aggressive
55 & above 45% - 55% 45% - 50% Conservative

 

 

Also read :    SIP Calculator | Power of Compounding - Calculator | Best Performing SIP Funds | Basics of SIP

Back to Previous Page  | Home