A practical framework to prepare a goal based investment plan

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 pv_diaries

personalfinance behaviouralfinance investment investing goalbasedinvesting

Dear Contacts, I have developed a framework, that you can use, to learn about the behavioral or personal finance basics.

It is a part of my efforts under the PPF (Practical Personal Finance) Series to create awareness about Financial Literacy in India.

Please note that you will have to work hard to understand and answer each step. Many terms may require you to read through pages of any website like Investopedia.

But, it is my sincere promise, that, the end result will really surprise you!

You can visit https://lnkd.in/dySDJDSc for submitting your response to this assignment as well!!

You can also visit my blog https://lnkd.in/eNeeRRAp for many such and other interesting and useful posts.

Pl provide feedback in the comment sections, if any.

Assess your risk tolerance profile using following tests and select the most applicable option from the below: *
Upload the screenshot of the risk profile test result*
Add file
State your financial objectives (only four). 
1. One should be very short term (to be achieved in three months), 
2. Second should be of medium term (to be achieved in one to two years), 
3. Third for the long run (more than five to 20 years away)
4.. Fourth should be 20 years away
*
State your asset allocation using the following asset classes, with proper reasoning  
1. Gold 
2. Indian Equity - Investing Directly / Through Mutual Funds 
3. Real Estate 
4. Debt (FD, PPF, Bond etc.)  
5. Foreign Equity - US 
6. Foreign Equity Beyond US 
7. Silver 
8. Other commodities 
9. Crypto/Digital Assets. 
Make sure to keep this in line with your risk tolerance profile found above.
*
Upload your final portfolio in PDF format using the Core and Satellite Approach. 

Also make sure that you mention financial objective against each asset class. 
*
Add file
State products like MF names, Crypto Names, Bond Names that you will use to build your portfolio*
Out of the following- What types of risks are likely to be faced by you? How are you planning to manage them?
1. Credit Risk
2. Duration Risk
3. Liquidity Risk
4. Behavioural Risk
5. Over / under diversification risk / concentration Risk

*
Which investment philosophy/ies do you prefer, out of the following, for your equity portion? Why?
1. Value
2. Growth
3. Momentum
4. Quant 
5. Smart Beta
*
Are you a trader, an investor or mixed of both?*
Submit
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