{"id":10376,"date":"2018-05-11T12:51:15","date_gmt":"2018-05-11T07:21:15","guid":{"rendered":"https:\/\/www.moneyworks4me.com\/investmentshastra\/?p=10376"},"modified":"2020-02-28T15:01:40","modified_gmt":"2020-02-28T09:31:40","slug":"how-are-your-risk-profile-and-the-current-portfolio-size-linked","status":"publish","type":"post","link":"https:\/\/www.moneyworks4me.com\/investmentshastra\/how-are-your-risk-profile-and-the-current-portfolio-size-linked\/","title":{"rendered":"How\u00a0are your Risk Profile and the Current Portfolio Size Linked?"},"content":{"rendered":"

Your portfolio-size will be adequate, if the returns from that portfolio are able to support your goals.<\/strong><\/h2>\n

Goals include things that\u00a0you need or wish to provide\u00a0e.g. higher education for children, marriage of children, corpus for a comfortable retirement, etc. Goals can also include things that\u00a0you aspire for or dream about\u00a0e.g. a farmhouse, a luxury car, grand world tour and leaving an inheritance after living a life without regrets.<\/p>\n

All your goals need to be converted to the money required at the future date. The money required in future will translate to money you need to invest today\u2014lump sum and\/or an SIP. And, the return that you earn plays an important role in deciding this amount. A higher return would mean you require a smaller portfolio today.<\/p>\n

But, what is a reasonable return to expect?<\/h2>\n

This depends on your Asset Allocation which is determined by your Risk Profile, and not the size of the portfolio. For a Moderate Risk Profile\u00a0(50-50 split between Equity and Debt)<\/em>\u00a0a reasonable return is 10 to 12% CAGR on your entire Investable Surplus. So, if you need to provide Rs. 2.5 Cr after 20 years, you need a portfolio size about Rs. 30 lacs today or an SIP of Rs. 25,000 pm.<\/p>\n

Read the series of the next articles to know\u00a0different risks in a Stocks portfolio.<\/strong><\/span><\/p>\n

Start with knowing<\/span> ‘What are the different risks at\u00a0the Stock-level?<\/a><\/span><\/strong>\u2019<\/strong><\/span><\/p>\n

If you liked what you read and would like to put it in to practice Register at MoneyWorks4me.com<\/a>. You will get amazing FREE features that will enable you to invest in Stocks and Mutual Funds the right way.<\/p>\n

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Your portfolio-size will be adequate, if the returns from that portfolio are able to support your goals. Goals include things that\u00a0you need or wish to provide\u00a0e.g. higher education for children, marriage of children, corpus for a comfortable retirement, etc. Goals can also include things that\u00a0you aspire for or dream about\u00a0e.g. a farmhouse, a luxury car, […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[1149,1147],"tags":[],"modified_by":"MoneyWorks4me","_links":{"self":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/posts\/10376"}],"collection":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/comments?post=10376"}],"version-history":[{"count":0,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/posts\/10376\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/media?parent=10376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/categories?post=10376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/tags?post=10376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}