Financial Planning Process

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We follow a 4 step financial planning process which helps us better understand your financial world and thus help us in construct of for best suited portfolio for you.

Risk Assessment

The first step in financial planning is to ascertain your capacity for undertaking financial risk. The risk taking capability depends on the following factors:

  • Demographics like age & life stage
  • Socio economic factors like habits and lifestyle
  • Cash flows
  • Time horizon
  • Liquidity requirements
  • Objectives & Goals
  • Responsibilities

An understanding of these dimensions will help us enable us to ascertain your risk metric based on which investment decisions will be made. We classify the risk parameters into five profiles

  • Secure
  • Conservative
  • Moderate
  • Growth
  • Aggressive

Every individual has a different attitude towards risk. Our comprehensive risk profiling process ensures that your portfolio is properly diversified across multiple asset class and the investment options recommended to you is in line with your risk tolerance levels

Asset Allocation

Once the risk appetite is defined, we move to getting the right asset allocation in line with risk profile. Getting the right asset allocation is the single most important factor of financial planning. A right asset allocation helps and enables to get optimum returns and reduce risk by diversifying across various investment categories and products.

Asset Allocation is a process to determine the investment to be made among various asset classes which have different and fluctuating returns over different time horizon. Itis the major contributor to portfolio risk and return. We will make sure that your investments are spread across various asset class i.e. debt, equity, real estate, structured products, private equity, gold and other alternates to build a portfolio that balances both risk and return well.

Building Financial Plan & Portfolio

After understanding the asset allocation strategy, we will seek to create a portfolio in agreement with your investment strategy. A detailed plan is drawn out to meet your short term and long term financial goals across multiple asset classes. During building financial plan and portfolio, we will ascertain your cash flow, investment objectives and recommend best in class and highly rated investment products with proven track record ensuring optimum returns are delivered with controlled risk.

Click here to see sample financial plan

Review of Portfolio & Recommendations

The portfolio is tracked on an ongoing basis to monitor returns, cash flows and asset allocation. We evaluate performance through an ongoing monitoring system of controls. We constantly provide advice on appropriate rebalancing of your portfolio wherever required on the basis of performance of each asset category and analysis of future expectations. We do not believe in unnecessary realignment of portfolio and will make changes to the portfolio only if it is required. We are very confident of our recommendation and make sure right funds are recommended at first place to avoid restructuring of portfolio in short term. We send detailed monthly portfolio updates and comprehensive quarterly portfolio to compare performance of our portfolio with markets.