Once we understand you risk-return profile, we can allocate your investments across asset classes (equity, bonds, equity mutual funds, bond mutual funds).

Smart asset allocation involves evaluating various needs and wants of the individual depending on his or her age, net worth, return objective, risk tolerance, liquidity needs, tax situation and unique circumstances. There is no one asset allocation that fits all. We work with our clients to understand their requirements and suggest a balanced asset allocation for their financial safety and security. Below checklist helps us understand the client need and recommend a customized portfolio that meets their requirements. This approach also helps to monitor the investment portfolio.

Your Total Return Objective: How much return do you want from your investment portfolio?

Desired return vs. required return. Return requirements are going to be driven by annual spending (income from the portfolio) and      relatively long-term saving goals (appreciation of the portfolio)

Your Risk Objective: How much risk can you really tolerate to generate investment return? it will depend not just on your      willingness but also your ability to take risk

Your ability to take risk will depend on the following factors:

Size of the portfolio relative to overall financial situation.
What are your financial needs and goals, both long term and short term?
How important are these goals?
How serious are the consequences if they are not met?
How large an investment shortfall can the investment portfolio bear before jeopardizing its ability to meet major short-term and      long-term investment goals?

Subjective Assessment (Do you like bungee jumping or do you prefer nice and steady routine?)

Your liquidity needs from the portfolio: How easy it is to meet anticipated and unanticipated demands from the investment      portfolio?

Illiquid holdings such as real estate may promise higher returns but it can be extremely difficult to transact out of the illiquid      holdings without suffering high transactions costs.

Long-Term or Short-Term
Multi-Stage (Are your kids growing up and you need to provide for their education?, Have you save enough for your retirement?       etc.)

Tax bracket
Profile suitable for dividend income?
NRI tax issues

Anything not covered above and needs to be considered