Asset Allocation Strategies: A Case Study in Mutual Fund and Inaurance Portfolios in Wallet Wealth LLP

  • TM Jagatheeswaran Department of Management Studies, Vels Institute of Science, Technology & Advanced Studies (VISTAS), Chennai
  • A Narmadha Assistant Professor, Department of Management Studies, Vels Institute of Science, Technology & Advanced Studies (VISTAS), Chennai
Keywords: Mutual Fund, Asset Allocation, De- Risking

Abstract

This case study explores effective asset allocation strategies, focusing on mutual funds and insurance portfolios, with an emphasis on incorporating a de-risking factor. It underscores the importance of strategic asset allocation customised to each person’s risk profiles, Investing objectives, and temporal horizons . By utilizing mutual funds and insurance products, investors can construct diversified portfolios to mitigate risk and optimize returns. The study examines how different combinations of these instruments can enhance portfolio resilience and performance. Moreover, the integration of a de-risking factor adds a dynamic element to distribution of assets. This entails modifying the asset in the portfolio. mix depending on the state of the market and risk preferences to minimize downside risk and capture upside potential. Through historical analysis and scenario simulations, the study evaluates the efficacy of various asset allocation strategies, highlighting the benefits of incorporating a de-risking approach. It demonstrates how this strategy can protect capital during market downturns while capitalizing on growth opportunities in favorable market conditions.

Published
2024-05-28
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