Anish Writes - The Top Bucket of Investment Allocation

Today we cover the third bucket of your investment portfolio which has the potential to fulfil your aspirational goals – like funding your start-up business, buying a vacation home, taking a few years sabbaticals or even funding your next start-up. However, these carry a much higher risk than the first two buckets we discussed. So think of this as a “call option”. A call option pays off when the value of the underlying asset goes up and the call option gives one more than proportionate returns than the underlying.??

?

Aspirational risk: Will have assets that yield above-market returns but carry a much higher risk of capital loss. For example, venture capital, early-stage “angel investments” and family-owned businesses (if they form a significant portion of the net worth). In addition, ESOPs, high-risk PMS and AIF funds and leveraged real estate would also fall under this risk bucket.

So with that, we have covered all three aspects, of your investment portfolio. This can be used to tag your current investments depending on the risk that the investment carries and the goal to which this investment is linked.

?

I will also be doing a short video series on this and we will be putting them out next week.

?

Have a good weekend.

?

Regards,

Anish