About this video

• Video Title: Asset Allocation Masterclass | Equity, Gold and Global Markets | Kirttan Shah
• Channel: Kirttan Shah
• Speakers: Kirttan Shah
• Duration: 19:54

Overview

This video is a masterclass on asset allocation, guiding viewers on how to distribute their investments across equity, gold, and global markets. Kirttan Shah explains the common misconceptions in investing, provides a framework for allocating ₹100 across different asset classes, and offers insights into investing in gold, global markets, and Indian equities. The session concludes with key takeaways and practical advice for constructing a balanced portfolio.

Key takeaways

• Common Investing Misconception: The belief that creating a portfolio from multiple good individual stocks or mutual funds automatically results in a good portfolio is a myth. Diversification needs to be strategic across asset classes and investment styles.
• Recommended Asset Allocation: For a ₹100 investment with a 5-year horizon and the ability to tolerate volatility, a suggested allocation is 60% to Indian domestic equity, 20% to global markets, and 20% to gold.
• Gold Investment Strategy: Invest 20% in gold, but do so gradually over 12 months by initially parking the money in a liquid fund. Gold's role is to provide stability during market downturns and offer returns comparable to Nifty 50 with lower volatility.
• Global Market Investment Strategy: Allocate 20% to global markets, primarily focusing on the US market due to its accessibility and diverse themes (like AI) not readily available in India. This allocation also helps counter rupee depreciation. Invest this portion gradually over 12 months, similar to gold.
• Indian Equity Investment Strategy: Allocate the remaining 60% to Indian domestic equity, equally dividing it among large-cap, mid-cap, and small-cap segments. Invest in large caps via flexi-cap funds with a value investing style, mid-caps via multi-cap or mid-cap funds with a momentum style, and small caps via small-cap funds with a growth style.
• Staggered Investment: For gold and global market allocations (20% each), invest gradually over 12 months. For mid-cap investments, also stagger them over 12 months. Large-cap and small-cap allocations can be invested lump sum.
• Portfolio Construction: A good portfolio requires diversification not just across asset classes and market caps but also across investment styles (value, growth, momentum). Avoid selecting funds solely based on past 3-year returns.