tag:blogger.com,1999:blog-7004453.post7215823899387696543..comments2023-09-02T19:53:06.144+05:30Comments on Understanding and applying value investing principles: Asset allocationRohit Chauhanhttp://www.blogger.com/profile/00356455735241398199noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7004453.post-63448956856885830472007-02-20T21:44:00.000+05:302007-02-20T21:44:00.000+05:30Hi Rohit, I use allocation on my equity and debt ...Hi Rohit, <BR/> I use allocation on my equity and debt money. But if i include real estate, it becomes too skewed in favor of real estate. <BR/> <BR/> I dont like the 100-age thing. <BR/><BR/> I decided sometime ago to just have a simple formula of 40% in land, 10% in debt, 25% in equity and 25% freehand. <BR/><BR/> Since I am still in the evolving stages of investing, and I want to be flexible, I think it might change if my learning and experience indicates something else. <BR/><BR/> And recently, I decided to put some money into 370 days fixed maturity fund. Here is why<BR/>1. Double indexation benefit on tax<BR/>2. No interest rate risk as its a hold till maturity plan<BR/>3. post tax possibility to earn around 8.5-9%<BR/>4. I dont want to lock my money for too long. 370 days is fine.Prem Sagarhttps://www.blogger.com/profile/08236396632137254843noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-38438601580222993362007-02-20T16:38:00.000+05:302007-02-20T16:38:00.000+05:30In asset allocation, to each his/her own.To me, th...In asset allocation, to each his/her own.<BR/><BR/>To me, the test 5 (sleep test) that you have mentioned is the most important one.<BR/><BR/>My approach is to keep a 5 year safety cushion in liquid investments and then close the eyes and put the rest in the equities - hoping that their historical outperformance would continue.Ravi Arankehttps://www.blogger.com/profile/08706098376170260290noreply@blogger.com