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Why you need to reallocate your portfolio in volatile markets?

Portfolio Asset Reallocation

How often have we come across the terms risk profiling and portfolio asset allocation? Okay, before you stop reading any further, let us ask you another question.

Do you have that one person in your family who is a self – proclaimed doctor? That uncle who has no academic background of medicine yet has prescriptions for almost every disease that you can think of?

Well, investing in India is a little like that. Most of us google the mutual funds which have given the highest return in the last 1-3 years. At best, we look at the number of yellow stars beside the fund name. And that is all it takes to start our SIPs. But, just like every Bollywood movie, there is always a “but” before every happy ending. And in your investment journey, this but is about the two terms we mentioned at the top.

So, if you they felt unfamiliar to you, well you definitely need to read on.

We are all unique individuals. Every person earns a different amount of money and has a different structure of expenditure. Some of us want to buy a house early and some intend to defer for another 10 years. Some have to think about educating two kids and some have to think about educating themselves more. So basically, we all have very different and very unique financial objectives.

Therefore the objective of investing is not to be able to select the best funds but to be able to fulfill your financial objectives. You might have selected the mid cap fund which gave over 40% returns last year but if you are planning to fund your wedding next year and the stock markets choose to take some rest, well, you might as well be doomed.

And this is exactly what risk profiling and asset allocation helps you identify. At CAGRfunds, we help each of our investors to first establish their risk profile. This means how much risk you should take, how much you are willing to take, how much you require and how much you can actually take. Subsequently, we mutually establish your ideal asset allocation which simply means where you should be investing your money and in what split.

Stock markets change every day. And so do your investments. But your ideal allocation helps you achieve your objectives. However, it is possible that market volatility over short periods and trend movements over long periods can alter your actual allocation significantly. And there comes the need of adjusting your portfolio back to its ideal allocation (which can also change over time).

While a lot of us have started equity SIPs, we find very few manage their investments periodically with the discipline that is warranted of them. For some the task is too complex and for some, they simply do not have the time. Therefore, at CAGRfunds, our algorithms now evaluate every single portfolio to identify the need for any re-allocation adjustments. This is an extremely important analysis for any investment that you make. Simply because this ensures that you are prepared to fulfill your financial objective.

Still not convinced? Call us on +91 97693 56440 and we will be happy to get candid on how this makes sense for you!

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What we ought to learn from our mothers!

Mother's Day

The last time I went back home, I noticed something I had never noticed so far. My mother who happens to be a quintessential homemaker was scribbling something on what looked like a pocket diary.

I have always been a curious kid. So after she was done, I asked her to explain her earnest efforts. In a very matter of fact tone, she said, “mahine ka hisaab”.

Sounds familiar, doesn’t it? For all these years when we were growing up as kids, our mothers have done exceedingly well on managing the domestic spends. Sadly, we don’t have any report cards to showcase their innate ability to budget, spend and save – all at the same time.

In my personal experience, most of the households where the women is a homemaker, the concept of “petty cash” is common. These days where both partners are working, having a joint bank account is usual. Back then, the earning husband used to give a lump-sum monthly sum to his wife which he aptly termed as “ghar kharch”. But to the wife who in most cases had no other regular flow of income, that was her bit of monthly salary. And while she had the responsibility of ensuring that the home operations run comfortably, she also had this target number in mind which she wanted to save every month.

That saving would usually be a very small amount (for the husbands knew their maths well!). Also, almost all of it was always stored in cash (and hence was not growing in value) But that little number every month was adding up to her dream corpus. Every month, bit by bit, she got closer to fulfilling her dreams.

That evening as I saw my mother doing her monthly calculations, I walked back in time. In a flash, I re-visualized all of those moments when she victoriously saved more than she intended to. Or those occasions when she spent a small part of those savings to buy me a new dress. Not to mention the recurrent bargaining sessions with the kirana store bhaiya to save a little extra that month.

While we talk a lot about the sacrifices our mothers make for us, I think we completely miss to appreciate this excellent acumen that they inherently possess. And this acumen isn’t really about being a woman. A lot of women of my age are unable to control their urge to spend. They shop just a month before the sale is about to start because they dread the crowded malls during the sale days. They also shop when the sale starts because oh, who doesn’t shop during the sale? And wait, what about the new arrivals just after the sale got over? There you go, the pleasure of saving by not spending is just so middle class!

So this mother’s day, I don’t want to tell my mom how well she has brought me up. Or how I love her for all the sacrifices she has made. This mother’s day, I will try and learn a little more of the art to budget right, spend light and save bright!

A very happy mother’s day maa!

About the author:

Shruti is a financial planning enthusiast and spends substantial amount of her free time in helping out her friends and relatives sorting out their finances. Currently working with Mahindra & Mahindra, we are happy to on-board her as one of our guest writers. She is an MBA from MDI Gurgaon and a CFA (CFA Institute, USA). 

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Now get rich at less than the cost of one dinner every month!

Start investing in mutual funds with only Rs 500

As part of our Investor Education Initiatives at Corporates, we speak to a lot of employees. And one of the first questions that we ask is – How much money do you think you need to start investing every month?

And amusing as it may sound, the answer varies from a few thousands to a few lacs. Thanks to the TV commercials by AMFI on “Mutual Funds Sahi Hai”, some people now know the truth. All you need to start investing every month is Rs. 500. Yes, that is less than the cost of 1 dinner, 1 new dress or 2 movies!

Unlike big ticket investments like purchasing a house or gold, mutual funds are accessible to all kinds of investors. The initial investment amount for an SIP has been kept as low as Rs. 500 for a lot of funds just to democratize investing. So, it was never about the amount. A lot of us do not start investing only because either we are not aware or we tell ourselves – “Next week pakka!”

And just in case you want to know what the impact of starting to invest early is, read our other article here.

But now that you are aware of both the amount and benefits of early investing, visit us and drop in your details. We will reach out to you within 24 working hours to help you get started on your journey of getting rich!

Alternatively, feel free to reach out to us on +91 97693 56440 or email is on contact@cagrfunds.com to know how you can get started with your monthly SIPs.

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Track Your Mutual Fund Investments Real Time

Till some time ago, every family had a relationship manager who would periodically come and meet our parents and discuss his mutual fund investments with him. And that was the only time our parents could get to know how their funds were doing. This is similar to those times when the only way to send money to someone was to visit a bank branch and deposit some cash/cheque.

With the onslaught of technology, everyone is seeking more convenience in everything that they do. So we don’t want to visit bank branches anymore and neither do we want to depend on our advisor to tell us how our money is doing. At CAGRfunds, we realized this urge for independence and therefore provided our clients with the convenience of tracking their investments on their own personal CAGR dashboard.

Once you register and start investing through the CAGR platform, you are assigned your own login details with which you get access to your own dashboard. Not only can you invest in mutual funds online but also track how your funds are performing.

But you do get a bunch of statements on your email, right? So what is there to track? Well, three reasons why our dashboard helps:

Comprehensive Data:

Some reports give you the value of how much your money has grown while others show you the list of transactions you have made. We give you everything relevant at one place. We show you how much you have invested, the current invested value, the absolute return and the annual return.Not only that, we show you the individual funds that you are invested in and what is the return you are making both at the fund and portfolio level. We also show you how your investments are split between asset classes and if it is in sync with your decided asset-allocation.

Simple Enough For Anyone To Get It:

The fine print and numbers overload on the statements you get on email makes it all the more complicated. Either you sift through all the information yourself or stay uninformed. We obviously don’t want that and hence our dashboard and reports are quite simple. Our clients told this to us! Don’t believe? Read here.

Any Time Visibility:

Reports generally come to you at the end of the month or when you transact. But with us, the next time you are discussing investments with your friend, just log in, check your current portfolio value and returns and have a more informed discussion!

We, therefore, ensure that you stay in complete control of your portfolio. So the next time you call us, it is only to discuss your portfolio, not to get data – because your dashboard gives you all the data you need!

If you have been facing trouble tracking your investments and want to switch to a truly delightful investing experience, do not hesitate to call / Whatsapp us on +91 97693 56440. You can also comment on this post or email us on contact@cagrfunds.com.