Wealth Growth Solution
Wealth Growth solution is one of our wealth management solutions using mutual funds only and suitable for HNIs (High Networth Individuals). This solution is for you, if you are already rich enough to fulfill all your financial goals comfortably. Any portfolio created above and beyond fulfilling your goals becomes your wealth portfolio.
Our Wealth Growth solution is meant for creation and growth of your wealth portfolio. It uses Asset Allocation at the core. Asset Allocation means investing in various asset classes i.e. Equity/Debt/Gold in right proportions to get optimal risk adjusted returns in your portfolio. As we don’t know which asset class will overperform or underperform in any year in future, it is prudent to diversify the investments across asset classes. For example, if you invest only in Equity Funds, your portfolio value may fall temporarily by 20%-30% when stock markets crash due to various reasons/risks. However, in addition to Equity Funds, if you also invest in Debt Funds and Gold Funds, the portfolio value shall fall much less than stock market fall. Debt portion gives positive returns and Gold portion gives negative correlation w.r.t. Equity portion in the portfolio, thus reducing the overall fall in the portfolio value. Eventually, this leads to growth of your wealth portfolio with relatively lower volatility than otherwise.
Attached below is an example which indicates the investment returns possible in this solution in the medium to long term. In this example, both lump sum and SIP amount are split into 3 parts. The split amounts are invested into debt funds, equity funds and gold funds separately. As shown, the total portfolio value and returns increase as holding period increases. For this illustration, the average returns assumed in Debt MF, Equity MF and Gold MF are based on historic returns.
