How to reduce risk in an investment portfolio
Вставка
- Опубліковано 4 жов 2024
- A discussion on how to reduce risk in an investment portfolio with a clear goal and targe corpus and the importance of reducing equity exposure in a step-wise manner well before we need the money.
I feel guilty to watch these videos for free... Sir please give a patreon link or something... This deserves appreciation 👏👏👏👏👏
Thank you appreciate the support
Thanks Pattu!! Your rebalancing videos and the 'no compounding in mutual funds' videos have been real eye openers
Sir, even after 6 years im watching this video. What a fantastic data backed up session. Really its worth forever in investment philosophy. You're my investment guru to show the path and destiny
Thank you
Thanks Sir for putting so much efforts to make the point clear
Thanks Sir.. you are not like other advisors who keep on advertising mutual funds and advising on increasing SIPs in equities only without any concrete guidance..you have explained everything very logically.. i am following this video to plan my future goals as it seems really convincing..
Keep watching video by video on this channel. Very informative and statistically driven approaches. Thanks a ton, Sir. This UA-cam restricted me to give only ONE thumbs-up, If I have 100 accounts, I could have given 100 thumbs-ups.
Wow.. Easily, one of the best article I have came across recently.
Pattibiraman sir,you are fabulous. My pranams.I owe dedt of gratitude for creating awareness among people. Thanks.
Thank you
An excellent fact based video which illustrates the real life scenarios with actual data points. kudos. !!
Very interesting method to mnage portfolio risk. Thank you. Couple of comments - first debt is assumed to be without risk.. in the current times debt seems to hve risk as well; how do we manage this. Second, when you are looking at retirement income, goal based portfolio is not very effective; uness you convert the income requirement to goals in 5 year intervals. Your comments would be appreciated.
Hi, I am a big fan of yours, have learnt a lot from your channel. I have been wondering if one can apply step wise reduction of equity on the basis of equity XIRR. One can set a reasonable (but still on the higher side) equity xirr target and once that equity xirr is reached, reduce the equity % of the portfolio and realise the gains into debt instruments thereby taking advantage of the swings of equity market in our favour. I am asking this because as a college student i don't have any clearly defined long term goal yet and at the same time want to invest till my goals (atleast 30yrs away) become clearer. Would really appreciate your views on this. Thanks
Useful video sir
If i have investing monthly for example 1000 rs in 60:40 in equity and debt how should i rebalance at year end
Pattu Sir. Excellent Video. I know you invest in NPS / PPF for Fixed Income. I do not have NPS. Apart from PPF what should be relatively safe fix income investment Sir? As of now after learning from your clips, I have invested in a Money Market fund and one Short Term fund. Investment horizon is 11 years away. Thanks.
Hi Pattu Sir,
Thank you a lot for continuously teaching us.
My situation is, currently only 30% of my retirement goal portfolio (25 yr goal) is in mutual fund, as I stated late. So, from now to another 2-3 years, I think to do all 100% into MF to increase the equity exposure to 70% of portfolio. So question is, should I do rebalance untill I reach the target exposure?
serious insights following ! ! awesome ! loved it !
Hello Professor,
Nice content all around, thanks.
Question please:
1) When you say "60%" Equity. Is that 60% of your total Invested Amount? I.e. IF you invest 100 Rs per month, then 60 in Equity and 40 in Debt?
2) When you say "Rebalancing", does that mean you book profits from Equity and shift it to Debt *so that* the "Actual Value" of equity goes to 60%? (Or whatever our targer % is).
Asset allocation refers to market value. Rebalancing is a two-way street
@@pattufreefincal Got it professor. The "exposure" is actually the market value and *not* how much you have invested. You might have invested 100 Rs, but if its current value is 200 Rs then your total exposure is 200 (not 100).
Thanks.
PS: Love your thick accent in your angry videos 😂. Reminds of NNT.
Thank you, that was what i was looking for.
Sir, like you mentioned at the end, "Equity can be further reduced if the portfolio is well above the target portfolio earlier". Why can't the same thing be followed in constant equity? If followed, that will have a chance of reaching the target much earlier than intended, and investment into that bucket can be stopped. Anything danger in this way?
Wonderful sir.
thank you
Pattu sir once again thanks for another great video. I'm really thankful to you for the insights and DIY knowledge i'm gaining from freefincal.
Have a question, do we need to re balance every year even for hybrid funds?
Yes treat them as pure equity
Pattu sir can you please tell me how to decrease your ongoing sips since most of the amc do not have such options.The only option they have is either stop and start a new.Please enlighten me on this sir .And the video was very informative.Thanks
invest on your own!
Sir why have u taken inflation as 10%? Whereas it is expected to be 6%
How to get the robo advisory tool exe file?
The free version is discontinued
Excellent video Sir.
thank you
amazing insights sir !!!
thank you
If someone has 25 year long goal, still they should reduce equity after 5, 10, 15, 20 years and continue...?
It should be proportional use my robo template
does this mean getting out of the equity based fund before our targeted time of what we started with
what is the practical way of doing it
i am a student, please reply
yes it does. practical way is simple sell!
Thank you 👍🏻
Sir 20 sal ke liye per month sip chalu ki thi,7sal sip continue ki
Par ab sip 4 month se mene band ki par maine redeem nhi kiya,mera jo corpus or amount he o me vaise hi compounding ke lie usi me rakh sakata hu ky.aur return milega ky?
Is it possible to backtest the following case? For Example, let's say in year 0 Equity:Debt = 60:40, In Year 1, E:D= 57:43, Year 2 E:D= 54:46, Year 3, 51:49 and so on for 20 years, How is the result in this case?
Easy enough but what is the logic behind a 3% drop every year?
Just want to check volatility and return :)
hmm let me check
@@pattufreefincal 3% drop each year because equity-debt is 60:40 and goal is 20 year ahead such that all corpus will be in debt after 20 year. Nice approach i think. Let us know your thought Pattu sir.
@@pattufreefincal have you checked this sir?
Great sir
thank you
I am very convinced ,how can I get in touch with you,want to invest in MF
I dont provide investment advice
5:10..sesex histroy chart..
🔱📶⏳👍💯
Using pirated Windows....:))
This does not make any sense at all! Keeping aside the completely flawed premise of meeting a fictitious and random target corpus, you dont even tell us half the required important information about the investment itself.
Have you lost it !!? 10% inflation!
If this goal is assumed for education goal 10% inflation is minimum.
Do some googling, Inflation in 2011 was 9.6%