My current Asset allocation and investments

One of the questions I get asked most is the kind of asset allocation I follow and what are the current investments I am having. While readers of my blog will understand my openness in sharing a lot of personal details, I am obviously a bit uncomfortable in sharing the direct monetary figures of this. At the same time, I do want to share as much information as possible in the blog as I know many people benefit from the same.

I have therefore come up with an idea of Financial Independence Units, where each FIU has a certain value, suppose it is X. Now if I say my net worth is 100X, then it will not reveal my real net worth for you do not know X. Yet, you will be able to understand my asset allocation and the relative investment figures that are currently there.

So, with that background, let me give you the total asset base as of last Friday, 28th September and the asset allocation thereof. Note that I mainly invest in Equity ( both stocks and MF ) and Debt. There is some Real estate I have in terms of a flat in Chennai but I do not have much plans to sell it right now. Ok, the asset allocation and breakup are as follows:-

  • Total asset base is 100X
    • Equity allocation is 41X
      • Stock allocation is 21X
      • MF allocation is 20X
    • Debt allocation is 34X
      • PPF allocation is 9X
      • FMP allocation is 10X
      • Fixed income allocation is 9X
      • Hybrid allocation is 6X
    • Real estate current value is 20X
    • Insurance allocation is 5X

Note that this is my current asset allocation and it was obviously a fair deal more before the current drop in the markets. In terms of general asset allocation principle, with the real estate and insurance out of the equation, I normally try to maintain a 60:40 ratio between equity and debt. Right now this ratio is more like 54:46 and therefore I am looking at investing more in stocks over the next 2 months or so.

The other question most people ask me is where do I get my passive income from. As of now it comes from the following sources:-

  • Fixed income allocation gives me a certain amount through interest earnings.
  • Dividend from some equity MF schemes.
  • Dividend from Stocks.
  • Capital gains from FMP redemptions.
  • Capital gains from any hybrid fund redemption.

I can also withdraw from my PPF account but I have never done it so far in my life and do not anticipate doing it for another 6 years at least.

All this basically means that my PPF will be useful for me in the age band 60-70 and beyond 70 I will be using my equity assets for the rest of my life span.

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4 thoughts on “My current Asset allocation and investments

  1. Sir, As per my calculations, You are a USD Millionaire ( Indian money over 7 crores). [ hints for my assessment: Your PPF yearly interest is around 5 lacs and PPF constitutes 9% of your portfolio]
    Congratulation sir for being in the top 1% of the world.

    Like

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