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Portfolio Review

Portfolio review is an important step in your ongoing portfolio management. We can help you in doing an annual portfolio review. Please note that your annual portfolio review is an important step in the financial planning.

Important components How to review your portfolio?

Know your financial goals:

All investors, irrespective of stages of life have financial goals, whether they are short term, medium term and long term. Are your investments tied to your financial goals e.g. buying a house, children's education, retirement planning, wealth creation etc? If not, then you should ensure that all your investments are tied to your financial goals.

Re-evaluate your risk appetite:

Your risk appetite may change over time and changing life situations. Should you be taking more risks to get higher returns over long investment horizon or should you reduce risks? Re-evaluate your risk appetite objectively.

Optimal asset allocation:

The optimal asset allocation balances risk and return, based on your stage of life, financial goals and risk appetite (depending on your financial situation and risk tolerance). What should be your optimal asset allocation? If required, you should engage with us to know your optimal asset allocation.

Rebalance your asset allocation:

Review your current asset allocation and see, if rebalancing is required to bring your asset allocation to optimal levels. Even if your optimal asset allocation has not changed, rebalancing may be required because market movements may skew your asset allocation. You should always consider tax consequences in rebalancing and make tax efficient investment decisions.

Review fund performance:

You should know which funds in your portfolio have outperformed and which funds have underperformed. You should have objective criteria when reviewing fund performance. Fund performance should always be evaluated against a benchmark market index. Every mutual fund scheme has a benchmark index (you can find the benchmark index in the Scheme Information Document or you may ask your financial advisor). If your fund has underperformed against the benchmark over sufficiently long investment horizon, then you may consider replacing the fund with better performing funds in the same category.

Capital gains statement:

We will provide you with a capital gains statement, so that you know your tax obligation for the year. You will also have to pay taxes for dividends (IDCW) if any, based on your income tax rate. During the annual portfolio review we will help in preparation for filing your ITR and tax planning.