At Marcellus, we believe that goal based asset allocation is central to an investment portfolio that balances risk-returns and maximizes the certainty of achieving financial needs, goals, and aspirations; be it providing for children’s higher education or attaining financial freedom to pursue personal interests.
PLANNING
Why planning matters?
A personalized plan helps translate life goals into clear, measurable, and time-bound financial goals. Along with the cost, the time horizon of the goals plays an important role in planning for investments. For example, a goal that is 12 months away needs to be planned differently than retirement, which could be 10+ years away.
Key Benefits:
Clarity: Helps you clearly understand your current situation and future needs.
Structure: Helps in creating a portfolio asset allocation that clearly aligns investments with objectives, balancing risk and returns.
Control: Helps you make informed decisions, avoiding impulsive reactions or emotional swings driven by fear or greed.
Discipline: Makes it easier to remain disciplined and stick to a long-term investment strategy despite short-term market fluctuations and noise.
Comfort: Sleep with peace of mind.
ASSET ALLOCATION
Why asset allocation is important?
Various studies show that Asset allocation is the biggest driver of overall long term investment returns. Know More
Investors often worry about which stocks or funds to buy. However, it is asset allocation that explains most of the variation in investment returns (up to 90%) – both across time, as well as across portfolios.
What is Strategic Asset Allocation?
Strategic Asset Allocation (SAA) involves creating a diversified portfolio of various asset classes (Indian equities, global equities, debt, income, gold, etc.) based on your specific needs such as the time horizon, risk tolerance, and required investment returns. Diversification protects downside risk, whereas asset selection drives returns. The core objective is to optimally balance risk-returns and maximize the certainty of achieving financial goals.
Simply speaking, Strategic Asset Allocation turns a plan into action.
DIVERSIFIED MULTI ASSET VS EQUITIES ONLY PORTFOLIO
Different asset classes perform differently under varying macroeconomic conditions and market cycles. Diversification ensures that part of your portfolio performs at all times, and poor performance in one asset class can be offset by better performance in another uncorrelated asset. This reduces overall portfolio risk and volatility without compromising overall returns.
Invest with Marcellus
Get in Touch