Interestingly enough, it is,

• 4.6% Security Selection
• 2.1% Market Timing
• 1.8% Other Factors
• 91.5% Asset Allocation

With reams of market data to analyse and hundreds of studies to refer to, we can safely say that the ability to time the market, anticipate global economic changes, or forecast investor psychology are all important, but not THE important step towards optimising investments. As mentioned above, the performance of a portfolio is 91.5% dependent on a process known as asset allocation — the science of combining the right categories of investments in proportions that is just right for you.

This concept was originally developed by Nobel laureate Dr Harry Markowitz of the University of Chicago. Over the years, large pension-fund managers and other institutional investors have benefited from this approach. Even individual investors are taking advantage of this methodology to optimise their investments.

The pandemic has shown that we live in uncertain times, and protecting our worth is paramount. Moneyedge stands with you and offers you the support you need to protect your wealth. The pandemic has changed the way to see our health and our wealth. We have realized that the health of our loved ones is more important than anything else, and the comfort provided by our investments has been a valuable support in these challenging times.

Moneyedge provides a free review of your portfolio which is conducted by our experts. We identify the right asset allocation for your investment portfolio.

When we provide a portfolio review service, we completely break down your investment portfolio and analyse it. The aim is to align your portfolio as per your financial goals and preferences. A portfolio review exercise involves the readjusting and rebalancing of your portfolio according to changes in the circumstances, risk appetite, performance of the investment portfolio and/or in the investment objectives. Historical asset class performance, inflation and other related factors are also considered in this review.

The portfolio review service is not just about creating a plan but also continuing to monitor it. Both are key factors in long-term financial success. Capital growth, security of principal amount invested, portfolio diversification and consistent returns are the objectives that form the focal point of portfolio review and designs. A portfolio review keeps the best possible outcome out of your investments as the foremost objective.

Some of the key achievements that you will enjoy because of portfolio review include:

Overlapping investments – A might identify investments that are the same or similar. For instance, you may have invested in different mutual funds which essentially have a similar stock portfolio. This would double your risk exposure to that segment of the market.

Identifying underperformance – If you are reinvesting your National Saving Certificates and have no intention of using them in the medium-term, you may consider converting the fund to a PF account, if the latter is offering a higher rate of interest. If you have a SIP or even a share that is yielding much less than alternate options, maybe you can consider shifting such investments.

Idle money – A portfolio review may result in the putting of idle money to good use. If you have unnecessarily stacked up funds in your savings account you can instead link it to the market with investments as per your liquidity needs.

Save taxes – You may be losing out on tax-saving opportunities by not changing your investment patterns. If you have a 4-year FD, you can consider the five-year tax free FD instead. Similarly, if you have equity mutual fund investments, you can check if investing in the tax-free equity-linked saving scheme would be more beneficial.

Risk profiling – Risk profiling is a process we use to help determine the optimal levels of investment risk for clients. It aims to identify the risk required to meet your investment objectives, your risk capacity, and your tolerance to risk.

• Risk Required – refers to the level of risk required to be taken on investments to achieve your desired level of investment return.
• Risk Capacity – refers to the level of investment risk (or losses) that you can afford to take.
• Risk Tolerance –refers to the level of risk youʼre comfortable taking

We are one of the fastest-growing financial advisory companies in India. We have been managing financial portfolios of individuals as well as institutions for the past 12 years. With our extensive range of skills, sensible and futuristic investment solutions, we have the readiness to face an uncertain financial climate.

• Optimal diversification;
• Lowers the need for constant portfolio churning;
• Reduces the risk involved in your portfolio;
• Helps you benefit from a variety of investment strategies;
• Allows you to create wealth cushioning the downside;
• Holds the potential to outperform the market;
• Plans to protect your family, income and wealth;
• Projections of your wealth's potential growth;
• Comparisons to other relevant products;
• Alternative strategies; and
• Transparent information about product and advice fees

We follow a simple three-step procedure:

Step 1: Reach out Firstly, we complete our risk profiling form so we can understand your investment goals and objectives. We'll be in touch within two business days to set up an appointment for our consultation.

Step 2: Meet with us In your no-obligation initial appointment, weʼll discuss your values, goals, financial position, and whatʼs important to you and your family. We'll also provide an overview of our services and how we can best help you.

Step 3: Action plan and its implementationWeʼll develop a customised plan based on your existing portfolio. We'll then proceed with these recommendations through a well-thought-out strategy. Once the plan is implemented, we will be reviewing its progress continually.