What are Model Portfolios and why do we need them

As investors, we look for investments that give us returns commensurate to the risk we take. Model portfolios are assets that are grouped together with pre-specified weights to provide an expected return in line with the amount of risk taken.

These model portfolios are created considering in mind different requirements of investors based on their risk profile and thus accordingly helping investors in making broad asset class allocation decisions. How do you decide what percentage of your investments to be done in equities, what percentage in debt and how much in liquid funds? An individual’s risk tolerance, investment time horizon and the financials goals are the key drivers in a strategic asset allocation approach.

Model portfolios are simple and effective tools to get access to institutional investing level research and investment strategies.

Based on our in-depth research, we have created these model portfolios tailored to Indian market by selecting investment assets from direct equities, Equity Mutual Funds, Debt Mutual Funds, Index Funds and ETFs. Model portfolios help in risk appetite-based asset allocation, sector allocation, stock selection, fund shortlisting and rebalancing decision.

As an investor if you are actively managing your own investment portfolio, you need to stay updated on a variety of themes regarding the changes taking place in capital markets, global economies, Indian economy, sectoral trends, market events, funds and companies. It is overwhelming to keep a track of these many themes and then using this gained knowledge to make investment decisions. You can consider model portfolios as outsourcing the portfolio research and portfolio monitoring.

Please note these model portfolios are guideline documents for a broader group, no consideration is made towards your individual financial circumstances. We recommend seeking advice from a registered investment advisor for an individual investment advice.