Saturday, August 22, 2020

Indian Asset Allocation


All Weather Portfolio
  1. Equities - 60% 
    1. HDFC Sensex fund - 35%
    2. ICICI Nifty Index fund - 20%
    3. ICICI Nifty Next 50 - 5%
  2. Bonds - 20%
    1. ICICI Gilt fund - 20%
  3. Gold - 20% - thesis
    1. HDFC Gold fund - 20%

Post Covid Strategy : moving the 20% bonds to equities. Reasons
  1. Federal reserve is going to create a mother of all asset bubbles
  2. Dollar devaluation helps Emerging Markets
  3. Stock market is not the economy
  4. Indian case count will only rise and no moving back from here, most likely course is herd immunity. It doesnt seem like any lockdown is going to come back. 
  5. 20% Gold hedge can help counter any shocks - remaining 80% will capture bull run
  6. Bonds have already run up in the last 6 months. Time to capture the gains. Yields set to stay low in the forseeable future as government will do everything to get the economy back. 
  7. Gold has also had a nice run up, but with fiscal and monetary stimulus may benefit further. 

* Full disclosure : My posts are not investment advice. Its your money, so do your own homework. 

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