Launching Marcellus’ Goal Planning and Asset Allocation Service

“Good fortune is what happens when opportunity meets with planning.” – Thomas Edison

Investing for long-term wealth creation is like setting out on a long road journey. We hop into our car with the hope of building enough wealth to reach our destination – our life goals – before we run out of time. However, if we don’t clearly define a route map and choose a route that aligns with our driving temperament – we risk getting lost, arriving late and not enjoying the ride.

Planning helps you build your roadmap — guiding you toward your financial goals with clarity and purpose. Without it, saving and investing risk becoming aimless, often leading to poor investment decisions and missed opportunities. A structured plan aligns your investment actions with your life’s priorities. It also helps you enjoy the journey to financial fulfilment as you hit milestones such as your children’s university education, buying a holiday home and creating a corpus for retirement.

Why One Size Doesn’t Fit All

Many factors go into choosing the correct route for any journey. Can your car handle bumpy roads, or is it built for smooth highways? Do you prefer a stable, steady ride or something more adventurous? How frequently will you need to stop for refueling?

Just as no two road trips are alike, no two investment journeys should be treated the same. Along with our unique goals, each of us has different circumstances and preferences – and our plan should reflect these differences.

Take the example of a Kanpur-based textile businessman with irregular, unpredictable profits versus a Bengaluru-based tech professional with a steady salary income stream. Even if both happen to share similar life goals, their asset required allocation mix needs may vary significantly. The businessman may prioritize liquidity and stability to manage income fluctuations, while the salaried professional may afford to take a longer-term view with greater exposure to high growth assets. This example highlights asset allocation by occupation, but factors like wealth, income, expenses, and life stage also make each financial plan unique. A one-size-fits-all strategy overlooks these critical nuances, potentially exposing investors to unnecessary risks or limiting growth opportunities.

It’s Simple, But Not Easy

While creating a prudent plan and asset allocation may seem straightforward, the real challenge is sticking with it over the long term in the face of strong emotions such as greed, fear and constant market noise. While Do-it-yourself (DIY) financial planning through investing in mutual funds and equities offers a cost-efficient option, but it comes with certain risks to consider:

1. Lack of goal planning: DIY investors may miss importance of planning of important life goals like buying own house, child education, retirement etc. The crux of goal planning is to ensure the right amount of money for each financial goal when one needs it. This naturally requires asset diversification and behavioural guidance often best provided by a financial advisor.
2. Emotional decision making: Behavioural biases such as overconfidence during bull runs or fear and panic in stock market downturns derails even the best-laid plans. Consider a simple 70:30 equity-to-debt allocation. During a bull run, where equities have grown to become 80% of the overall portfolio, the rational mind would suggest rebalancing by trimming 10% of the overgrown equities and investing in underperforming debt. However, the emotional side will question: “Why sell when the bull market is thriving?”
3. Continuous monitoring and rebalancing: Advisors can help understand impact and recommend adjustments the financial plan if any changes in income, expenses, wealth etc. Similarly, as markets evolve, advisors can track performance, rebalance allocations, and recommend portfolio adjustments based on changing scenarios in a timely manner. A DIY investor might not be able to consistently summon time and effort for these activities.

How We Can Help

At Marcellus, we offer no cost and no obligation personalized goal-based asset allocation services to both existing and prospective investors. Our investment counsellors help define your financial goals, assess your risk appetite and determine your required rate of return to inform a prudent asset allocation strategy that may help you achieve your financial aspirations.

Watch our webinar on asset allocation on YouTube

For your free personalized asset allocation – connect with us at plan@marcellus.in