What should be ideal portfolio to include all asset kinds ?

I have Rs3,00,000 to be invested for financial year 2010-11 which is amount after deducting all of my liabilities. I have decided to invest Rs 1.56,000 in real estate per annum. What other assets financial instruments shoukd I include in my portfolio to create a best portfolio. What percentage of equity and non equity assets should consititure my portfolio. ?

2 Replies to “What should be ideal portfolio to include all asset kinds ?”

  1. hello frnd,
    first of all i appreciate ur decision of investing d more thn half % amt of ur portfolio in real estate.
    actually tht is the ideal start of portfolio without real estate ur portfolio doesnt considered a stronger one. if u knw d sharemarket thoroughly i.e if u have through study of technical and fundamental analysis then u should invest about 60% of ur remaining amt in pure equity and remaining , 20% in diversified MF’s & 20% in SIP’s.
    but remember u have to switch ur 60% amount in Equity to gold time to time depending on the mrkt
    condition then only u can make couple of bucks otherwise when mrkt is driven by bear’s at tht time ur investment will get blocked coz u cant afford to sell ur equity in bear markt. so switch to gold when u wil get the signal tht mrkt is started influencing by bears.

  2. I would consider a good investment when it has a good mix of
    1. Real Estate
    2. Equities (Directly or thru Mutual funds)
    3. Fixed Deposit
    4. Precious Metal
    This mix will give you a decent diversification of your investment or in other word less risky.

    To get into percentage of each of the transaction you need to put in depends on your future plans.
    For Example – Real estate is good investment but it lacks liquidity. IF you buy today and plan sell in short time then you loose money (all tax,duties, brokerage etc). Moreover, its not easy to sell in a short notice at best possible return. So invest that portion that you do not need at all even in case of crisis.

    FD is an important mix of your portfolio. This is liquid and recession proof. You can cash it any time without possibility of loss. Ofcourse inflation is -ve factor here.

    Equities- Excellent returns provided you or your advisor has good knowledge about it. +ves . You can cash it any time but during any downturn you may loose a lot of it. if you are young below 35-40 yrs of age then you may invest a good portion cos you can bounce back any time from your loss. but if you are nearing retirement then you should have not more than 10 =15 % in equity.

    Precious metals (like gold) these are investors best friend during recession.

    If i read your age at 29 yrs based on yr ID then
    Exposure in equity will be – 40%
    Exposure in real estate – 30%
    Exposure in precious metals 15%
    Exposure in FD 15%.
    Ofcourse i have not considered other factors like
    1. You marriage/ sister/brothers marriage
    2. Kids education/insuration
    3. Family members health
    4. Other loans etc.

Leave a Reply

Your email address will not be published. Required fields are marked *

four × four =