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Retirement Planning Approach

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Feel confident and well prepared for your future, whether you’re nearing retirement or just starting out.

We can help you assess your current overall financial situation and offer recommendations about investment solutions that fit your goals and risk tolerance based on your the retirement timeline.

Execution

Choose an asset allocation that aligns with your long-term objectives, time horizon and risk tolerance. As your objectives and risk tolerance change, make alterations to your allocation and continue to rebalance to keep the strategy in control.

Investment Allocation Strategy

Advise investment options to deploy savings in chosen alternatives. Asset allocation determines the overall asset classes for investment. The next critical step is to choose from a wide variety of investment options available amongst each asset class and make investments as per the plan. The key to strategize your investment allocation is to choose suitable investment vehicles and remain disciplined throughout the goal time horizon. The next critical step after strategizing your investments is to monitor and rebalance your portfolio on a regular basis.

Periodic Monitoring and Rebalancing

Returns on different asset classes in your investments portfolio usually vary over time and alter their proportions. Rebalancing is the discipline of reverting your asset allocation to your original allocation.

For example, let us consider Tarun invested Rs. 7,000 in equities and Rs. 3,000 in debt a year ago. Now, the debt funds he holds are valued at Rs. 4,500 and his equity funds are valued at Rs. 5,500. While his original asset allocation was 70:30 (equity:debt), Tarun is now holding 55% in equities and 45% in debt. In order to set his asset allocation back to his original and desired target, Tarun needs to sell a part of his debt investments and buy more in equities. This buying and selling of your portfolio investments in order to reset your asset allocation back to its original state is called rebalancing.


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