Do not make this asset allocation mistake

[@thiyagarajant472]

Totally agree with the recommendation of maintaining our own spreadsheet to deduce the asset allocation. Apart from the nuances of Hybrid funds, MF platforms typically won't include other assets like FD, PF, Physical Gold etc, but we need to accommodate these aspects to derive our own Asset allocation mix.

[@nandat8883]

Thx so much sir ! learned a lot watching your videos. God bless you. You have been providing great service to a community .

[@physicsallaround833]

The aggressive hybrid should not be seen as part equity part debt simply because in case of a market crash if one needs money he or she can not take out the debt part of that fund separately without realizing loss in the equity portion. Hybrid aggressive funds only role is to keep the daily ups and downs under check and automatic rebalancing to somewhat secure our equity gains without any tax implications. As for the money that one may need in near to far term purely debt … that also ultra short term or Money market funds.

[@track0123456789]

Very informative and gem video

[@dhruvdhaka5108]

Why wouldn’t it be a good strategy to use Gold ETFs/ Bonds as a place to park opportunity funds? Given that gold tends to be less volatile than equities and often remains stable or even appreciates during equity market downturns, wouldn’t it make sense to allocate funds to gold and then shift them into equities during a market crash? Are there any flaws in this approach?

[@pattufreefincal]

Huge flaws: "gold tends to be less volatile than equities and often remains stable " is as wrong as it gets. Gold is as risky as equity if not more. See old articles, vids or wait for a new one.

[@dhruvdhaka5108]

@@pattufreefincalThanks Sir

[@dhruvdhaka5108]

@@pattufreefincal I recently moved my opportunity funds from FDs to a Gold ETF, hoping to benefit from gold’s appreciation and eventually reinvest in equities when the right opportunity arises. Given that these funds were previously in FDs, where they were subject to taxes and remained stagnant for years, where do you suggest I should park this money for optimal growth and flexibility?

[@sathvikraomp2006]

@@dhruvdhaka5108 If you are gonna keep more than 1 year put it in arbitrage funds.

[@nrupal_gtx_gamer9594]

Lets say you invested in gold at 76000 and post budget the gold price dropped to 69000

[@ashwarya26]

Thanks for this perspective Could you please create a video to compare : 100% equity portfolio returns vs Asset Allocated portfolio returns over 15-20 years of horizon ?

[@parvezaziz2756]

Thx, was looking for just this clarification regarding the two parag parikh funds.

[@vigneshkumarponraj3596]

Given the long-term underperformance of active funds and their high fees, should investors in India prefer low-cost passive funds that can match overall market returns?

[@whiteroommenace]

I generally tend to assume all mutual funds as equity itself (not a fan of pure dent ones) , it better to look at it as a risky entity to begin with.

[@vsapre80]

Thanks for this. I have been considering my agressive hybrid holding as equity only and have had the same confusion when allocating money for fixed income assets. But if i remember correctly, there have been suggestions to just have 1 agressive hybrid as overall investment for upto 25L. In those situations...should the user hold debt funds separately...to have correct mix of equity and debt.

[@Nithishtom-1122]

Hello pattu sir I’m a new investor should I start investing in debt mutual funds or index funds . If dept mutual funds I don’t know any please suggest one

[@hjag1019]

Where do we count Equity Savings Fund? Equity, Debt or 50:50

[@polapart]

first make 1 crore then think about assets allocation.. 90% people are struggling to reach 1 crore yet..

[@physicsallaround833]

Trying to move around the money to asset allocate after you reach 1 Cr will attract a lot of tax burden unnecessarily which one can avoid if the asset allocation in done at the start.

[@ridersam5420]

​@@physicsallaround833 and how to do asset allocation at the start , I'm a young investor , and my all funds are equity , I have long goals only , so most of my investments are happening in equity....is nt it right ?

[@navinfernandes747]

Slightly different view, let your age decide asset allocation.. in the 1st decade, keep majority equity, add debt in 2nd and 3rd decade and if u r a lucky man to reach 4th decade in work, then further increase debt (which will be your corpus for initial few years of retirement)

[@kennilesh2000]

How about tax libality, sir? Maintaining equity and debt funds seperately attracts more tax than hubrid funds due to rebalancing. I love those hybrid balanced funds, but there are very few in that category.

[@pattufreefincal]

Accept the fact that taxes are inevitable!

[@professorraichur3361]

Pattu sir Can I consider Jeevan anand old scheme under debt portfolio under overall asset allocation? I am debt heavy. Adding LiC will be too debt heavy. My retirement portfolio With EPF + LIC+ nifty 50 + parag parikh flexi.

[@positive_vibes7089]

Sir, pls explain clearly about dynamic asset fund PP? For which goal we have to map that fund. Having clearing understanding that, they can change equity and debt percentage dynamically. Query is how long have to wait - like map with goal. Min 5 year or 10 year

[@stcoktin]

I think we are simply splitting hairs. Do you really need to analyse asset allocation to the last decimal point? Many active equity funds hold large amount of cash and debt - these days as high as 20%. Do agree about PPFF allocation. I think, as you put it, a basic distinction and understanding is good, nothing beyond that. Surprisingly, you have not dealt on market cap allocation and it's influence on equity asset allocation.

[@venkatvijayakumar6176]

Can we invest thru spouse Demat account to avoid taxes?

[@pattufreefincal]

No. income clubbing will apply

[@anuragmishra3978]

Sir , should the entire NPS corpus be considered as equity only or just the portion invested in equity oriented NPS fund , asking for tier 1 account.

[@pattufreefincal]

just the portion invested in equity oriented NPS fund

[@karthik2302]

Sir, I’m holding icici balanced advantage fund. What should I do now?

[@pattufreefincal]

Treat as equity

[@VGAKarnataka]

SIR KINDLY MAKE A DETAILED VIDEO ON DSP NIFTY TOP 10 EQUAL WEIGHT INDEX FUN...

[@japsltd]

Sir, In your videos you will say saving & investing in index funds are cheaper than FD's for retirement, to emphasize equity which beat inflation. In that way why it is not advisable to go with Midcap quality 50 for those much cheaper than Nifty 50, like yield can be higher than large cap fund with lower SIP than Nifty 50. Please your opinion

[@pattufreefincal]

You have decided that mid caps will return more than large caps. So take a leap of faith and find out

[@gopikrishnanjayaraman1550]

Gurunaadhaa, for past one year Individual stocks la concentrate senju, ippo En Asset allocation laam mallaaka kedakudhu .. 85% equity- 15% debt. 🙄 From next salary, should buy some Gilt funds aggressively. Age: 35

[@cpandit803]

I think Value research handles this

[@pattufreefincal]

The wrong way

[@narasimmamurthyr2534]

Thank you sir. This is in the context of risk profile ,am I right ?

[@pattufreefincal]

The risk profile of the financial goal, not the individual's

[@schewepes]

Debt portion of the hybrid fund is in debt, where is the risk to debt in a hybrid fund ? When an investor chooses between conservative, balanced and aggressive hybrid fund, he has made up his mind on the portion of debt in the hybrid fund and that's a measurable fact as per the fund's holding. I don't agree with your logic to consider entire hybrid fund as a equity. There may be some investors who don't like debt investment funds, but choose hybrid fund allocation instead.

[@yellenaresh5542]

If you already have an Equity fund in Portfolio, your multi Asset fund can have same stocks. Which means there is an overlap.

[@kothapallipavan]

I am investing icici pru multi asset fund

[@kpvk74]

Liquid funds??- debt oriented??

[@pattufreefincal]

What else would they be?

[@kpvk74]

@@pattufreefincal thanks sir

[@nrupal_gtx_gamer9594]

Sir is it better to Go for Arbitrage or equity savings if we fall in 30% tax Bracket