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Kyron Finserv
At KyRon Finserv we provide a structured approach to your wealth creation journey by partnering as your trusted financial advisor.
Our mission is to provide a personalized framework and execution path to our esteemed clients helping them achieving their financial goals.
The range of services caters to the core pillars of any financial plan including Investment Planning, Retirement & Tax Planning and Insurance & Estate Planning collaborating with certified and proven industry experts in our organization.
Mutual Fund
Factor Investing in India
Factor Investing in India: What Works, When, and Why What if you could improve your investment outcomes not by chasing the next hot stock, but by following a disciplined, research-backed strategy already used by some of the world’s largest investors? That’s exactly what factor investing aims to do.Rather than relying on predictions or market sentiment, factor investing systematically builds portfolios around proven characteristics, called factors, that have been shown through decades of global and local data to enhance risk-adjusted returns. These include value (undervalued stocks), momentum (recent top performers), quality (financially strong companies), and low volatility (stable-price stocks). This approach helps investors tilt their portfolios toward traits that historically drive long-term performance.The best part? You no longer need advanced tools or global accounts to invest this way. Indian investors can now access factor-based strategies through NSE/BSE-listed smart beta indices, as well as mutual funds and ETFs designed around these factors, making it easier than ever to invest using a rules-based, data-driven framework.In this article, we’ll break down how each factor, such as value, quality, momentum and volatility works, when it tends to perform best, and what real-world data says about its effectiveness in the Indian market. Whether you're new to this concept or looking to sharpen your strategy, you’ll come away with a clear understanding of how to make factor investing work for you. Value Investing: Looking for Bargains Value investing is about identifying fundamentally strong companies that are temporarily undervalued by the market, essentially, buying quality businesses at a discount. These stocks typically trade at lower price-to-earnings (P/E) or price-to-book (P/B) ratios, or offer higher dividend yields compared to their peers. Think of it as shopping for high-quality items during a sale.In India, this strategy is represented by indices like the Nifty 500 Value 50, which selects companies based on valuation metrics. Since 2021, value investing has emerged as one of the best-performing factor strategies in India, particularly during post-COVID economic recovery phases and broader market rebounds. These periods often see investors shift their focus from hype to fundamentals, favouring undervalued, stable companies.While value stocks may underperform during tech-driven rallies or prolonged market corrections, they tend to outshine in turbulent markets due to their defensive nature. Historically, value strategies have shown lower drawdowns and higher resilience compared to momentum or quality-focused approaches, making them a reliable long-term core allocation for investors seeking both stability and upside. Momentum Investing: Riding the Winners Momentum investing is based on a simple yet powerful idea: stocks that have performed well recently tend to keep performing well, at least in the short term. Typically, momentum strategies look at price performance over the past 6 to 12 months, often adjusted for volatility, to identify the strongest trends.In India, this approach is captured by the Nifty 200 Momentum 30 index, which tracks the top 30 companies within the Nifty 200 based on their risk-adjusted momentum. It's a strategy that tends to shine in bull markets, making it attractive for more aggressive investors seeking to capitalise on strong upward trends.However, momentum comes with higher risk. It can quickly reverse during sharp corrections or market rotations, something investors experienced during the market pullback from late 2024 to early 2025, when previously high-flying stocks saw steep declines.To address this volatility, some newer mutual funds have come up that combine earnings momentum with traditional price momentum. This hybrid approach aims to improve consistency and reduce drawdowns, offering a more balanced way to harness the power of momentum investing. Quality Investing: Prioritising Financial Strength Quality investing focuses on owning companies with strong, stable fundamentals, those that consistently deliver high return on equity (ROE), maintain low debt levels, and demonstrate steady earnings growth. These businesses tend to be more resilient, making quality a preferred strategy during times of market uncertainty or economic stress.In India, this style is tracked by the Nifty 200 Quality 30 index, which selects only the most financially sound companies from the broader Nifty 200 universe. The goal is to create a portfolio built on corporate strength and reliability, rather than market momentum or valuation discounts.Investor interest in quality has grown in recent years, particularly during periods of high inflation, global instability, or slowing growth, as investors look for safety without giving up on equity exposure. Quality stocks often provide better downside protection and more stable returns during volatile market phases. Low Volatility: Reducing the Ups and Downs Low-volatility investing aims to minimize risk by selecting stocks with the most stable price histories. These stocks may not shoot up quickly, but they rarely crash hard either.The Nifty 100 Low Volatility 30 and Nifty 500 Low Volatility 50 indices provide exposure to this strategy. These indices prioritize price stability, which can be especially helpful in market downturns.In early 2025, this factor outperformed all others as market volatility spiked. While low-volatility may underperform during bull runs, it serves as a valuable portfolio anchor for conservative investors or those closer to financial goals. What Actually Works in India? If you're looking for a single “best” factor in India, the truth is, there isn't one. Indian markets, like global ones, move in cycles. Each factor, value, momentum, quality, and low volatility, has periods when it leads and times when it lags. That’s why relying on a single factor can expose you to timing risk, while combining multiple factors can offer more consistent outcomes.In India, one of the most effective combinations over recent years has been value and momentum. Value tends to perform well during economic recoveries or when fundamentals regain investor focus, while momentum thrives in strong, trending markets. When used together, they can complement each other, capturing upside while smoothing out some of the volatility.Meanwhile, factors like quality and low volatility may not always top performance charts, but they play a vital role in managing downside risk, especially during market drawdowns or macroeconomic uncertainty. Their role is more defensive, helping to reduce portfolio shocks and support long-term compounding.Ultimately, factor investing in India isn’t about chasing what worked last year. It’s about building a disciplined, data-driven strategy that balances growth with resilience, through bull markets, corrections, and everything in between.ConclusionFactor investing gives Indian investors a structured, long-term approach to wealth creation, without needing to time the market. Since no single factor leads at all times, diversifying across styles is essential.In India, the value–momentum combination has consistently delivered strong results, while quality and low-volatility help cushion downside risk. You don’t have to choose just one, mutual funds and ETFs now make it easy to build a tailored, multi-factor portfolio.It’s not about prediction, it’s about discipline, transparency, and a long-term mindset. Factor investing may not be flashy, but with consistency, it works.Referencehttps://economictimes.indiatimes.com/wealth/invest/the-power-of-quality-investing/articleshow/121206553.cmshttps://economictimes.indiatimes.com/mf/analysis/focus-on-quality-invest-in-resilient-businesses-amid-uncertainty/articleshow/122153497.cmshttps://www.investopedia.com/terms/f/factor-investing.asphttps://www.nseindia.com/products-services/indices-strategyhttps://www.capitalmind.in/blog/nse-strategy-indices-factor-investing-basicshttps://m.economictimes.com/wealth/invest/equal-weight-quality-momentum-or-low-volatility-why-no-single-factor-investing-strategy-can-guarantee-you-steady-long-term-returns/articleshow/120215235https://www.youtube.com/watch?v=dy64yrMQN3o&utm_https://economictimes.indiatimes.com/markets/expert-view/is-momentum-only-about-price-icici-prudential-wants-to-redefine-momentum-investing/articleshow/122796495.cmshttps://economictimes.indiatimes.com/mf/analysis/focus-on-quality-invest-in-resilient-businesses-amid-uncertainty/articleshow/122153497https://economictimes.indiatimes.com/wealth/invest/the-power-of-quality-investing/articleshow/121206553https://www.linkedin.com/pulse/factor-investing-indian-markets-what-actually-works-khandavalli-fnwzchttps://quantpedia.com/performance-of-factor-strategies-in-india/https://www.researchgate.net/publication/https://www.axismf.com/factor-investingPrasad Iyer[Certified Financial Planner - CFP CM]
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Education investment planning for Prasad
How to Plan and Invest for Your Child’s Foreign Education Goal Have you ever imagined your child walking through the gates of a top international university, studying in a beautiful new country, learning new skills, and making their dreams come true? It’s a proud moment every parent dreams of. But while the goal is exciting, the cost of foreign education can be quite overwhelming.If your child plans to study abroad in the next 5 to 7 years, the best thing you can do today is start planning your finances. The earlier you start, the easier it becomes to build a strong education fund without stress. In this article, we’ll break down a simple, step-by-step investment plan to help you prepare smoothly and smartly, no financial background required. Start with the end goal in mind Before you begin investing, you need to understand what you're working toward. Think about where your child wants to study, the course they’re interested in, and how long it will last. These details will help you estimate the full cost, not just tuition, but also accommodation, travel, and daily expenses.But costs don’t stay the same over the years. Due to inflation, education fees increase by approximately 8-10% each year. And since you’ll be paying in a foreign currency, you’ll also need to watch exchange rates. Once you know how much the future cost might be, convert that amount to Indian Rupees (INR) and make it your target.Here’s a chart to help you understand how much you have to pay to study in these top destinations: Now that you have a clear goal, the next step is to understand how much time you have to reach it and how much risk you can take along the way.Understand the time horizon and risk appetiteYour investment choices depend a lot on your time frame. If you have 5 years or more, you can afford to invest in equity-focused options, which grow well over time but can be a bit bumpy in the short term. If you have only 3 - 4 years, it's safer to go with more balanced or conservative options that offer steady, if smaller, returns.Also, take a look at what you’ve already saved and compare it to the goal amount you just calculated. This will show you the gap you need to cover and help you decide how aggressively you need to invest.With this in mind, let’s look at the best ways to invest your money based on your timeline and comfort with risk. Choose the right investment instruments Now that you know your goal, timeline, and risk level, it’s time to pick the right tools. Not all savings methods grow your money the same way.Mutual funds through SIPs (Systematic Investment Plans) are a great choice. You invest a fixed amount monthly, and it grows steadily over time.International or index unds give you global exposure and can help protect against changes in currency value.Debt funds or fixed income options are safer and good for use in the final years before your child leaves.Many people use fixed deposits or savings accounts, but these may not grow fast enough to beat inflation. That’s why choosing the right mix of investment options is key.Now, let’s talk about how you can grow your investment power over time without feeling the pinch.Step-up strategy: Increase SIPs over timeAs your income increases over the years, your savings should grow too. That’s where a step-up SIP strategy comes in. By increasing your monthly investments every year, even by a small amount, you stay on track to meet your goal without needing to invest a huge sum all at once.For instance, starting with ₹20,000 per month for 7 years, and increasing your SIP by 10% annually, with an expected return of 12%, can help you build a corpus of over ₹34 lakhs. In contrast, if you had continued with a flat ₹20,000 SIP without any increase, the corpus would be just around ₹26 lakhs. That’s a difference of more than ₹8 lakhs that can be achieved simply by increasing your contribution gradually over time. This method makes investing feel manageable and flexible. It’s also smart to review your plan once a year and make changes based on your progress or life changes.And as you move closer to the goal, your strategy should shift from growth to safety. Let’s see how to make that transition smooth and secure. Transition from growth to protection closer to the goal About 12 to 18 months before your child needs the funds, it's wise to start moving your investments from equity (which can be volatile) to debt (which is more stable). This helps protect the savings you’ve built from sudden market drops.To stay organised, consider creating a separate education fund so it doesn’t get mixed with money meant for other goals, like a home or retirement. Protecting your investment in the final stage is just as important as growing it in the beginning.But when investing for foreign education, there’s one more thing to keep in mind: currency risk. Let’s understand how this can affect your savings.Track currency risk (Optional but useful)Because your expenses will be in a foreign currency (like USD, Euro, or GBP), the exchange rate plays a big role. If the Indian Rupee weakens over the years, you may need more INR than you originally planned.One way to reduce this risk is to invest in international mutual funds or ETFs that invest in international markets. This acts like a natural protection against currency changes. Also, it’s a good habit to review your total goal once a year and adjust for any major currency shifts.Once you’ve planned your investments, the next thing you need to understand is how to legally send the money abroad when the time comes.Understand the LRS (Liberalised Remittance Scheme)The Liberalised Remittance Scheme (LRS) by the RBI allows every Indian resident to send up to USD 250,000 per financial year for education and other permitted purposes. That means each parent can send this amount individually, giving you a combined limit of USD 500,000 if both contribute.This covers tuition fees, living costs, books, and more. But remember, this must be done through approved banks or financial institutions. Also, a Tax Collected at Source (TCS) of 5% - 20% may be applied based on the total amount and reason for the transfer.Many parents also set up an offshore investment account through the remittances to earn a minimal interest rate but protect their capital from Indian rupee depreciation.So, plan your remittances ahead of time and make sure you account for all paperwork and taxes involved.Even with all this planning, it’s smart to prepare for the unexpected. Let’s look at how to do that.Have a Contingency FundNo matter how well you plan, life can be unpredictable. What if there’s a delay in fund transfers? Or a job loss? Or a health issue? That’s why it’s important to keep 6–12 months of expenses in a liquid fund, money that’s easy to access when needed.This emergency fund should be completely separate from your education savings. Think of it as a safety net that gives you peace of mind while your main investments work toward your child’s dream.ConclusionPlanning for your child’s foreign education is more than just saving money, it’s about building a thoughtful, flexible, and realistic strategy. When you start with a clear goal, choose the right investments, and understand things like currency risk and remittance rules, you reduce future stress and increase your child’s chances of success.Keep reviewing your plan every year, stay consistent with your SIPs, and adjust as needed. Most importantly, start now. Because while the best time to begin was yesterday, the second-best time is today.Your child’s dream deserves a strong foundation. You have the power to build it, one step at a time.Prasad Iyer[Certified Financial Planner - CFP CM]
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Do Major Events Really Matter for Long-Term Investors?
Every few years, something happens that sends shockwaves through the financial world. It could be a bold government policy, a corporate default, or a sudden shift in global markets. These events often dominate headlines, trigger panic among investors, and raise serious concerns about the future of our investments. In those moments, it's natural to feel uncertain. After all, no one wants to see the value of their portfolio fall. The instinct to protect your capital kicks in, and many start to wonder, “Is this going to derail my long-term goals?” While these events can cause short-term pain, they rarely leave a lasting scar on long-term returns. Many of them turn out to be minor speed bumps in what is otherwise a steadily rising road. Let’s explore this through three major events from recent Indian market history, the 2016 Demonetization, the 2018 NBFC Liquidity Crisis and Covid, and how they impacted investors over time. 2016: Demonetization- A policy shock that didn’t break the market On November 8, 2016, India announced the demonetization of ₹500 and ₹1,000 notes, 86% of the currency in circulation. Aimed at curbing black money and boosting digital payments, the move caused widespread disruption: long bank queues, cash crunches, and uncertainty across the economy. Markets reacted sharply. Between November 1 and 21, 2016: NIFTY 50 fell 8.08% NIFTY 100 dropped 8.76% Yet, despite the chaos, the downturn was short-lived. Investors soon looked past the disruption, focusing on long-term positives like improved transparency and formalization of the economy. Demonetization was a reminder: markets may stumble on policy shocks,but they’re always looking ahead. 2018: NBFC Liquidity Crisis- A financial shock that the market digested In 2018, a big finance company called IL&FS couldn’t repay its loans. This created panic in the NBFC (Non-Banking Financial Company) sector. These companies borrow money for the short term but lend it out for the long term. When trust was lost, it became hard for them to raise money. Lending slowed, and investors got worried. The stock market reacted quickly. From September 3 to October 31, 2018: NIFTY 50 fell by 10.32% NIFTY 100 dropped by 10.92% It was a steep fall. But as weak companies were removed and support came in, things slowly got better. The takeaway? Markets may fall fast during a crisis, but they also recover. Staying calm and invested can make all the difference. 2020: COVID-19 - A global pandemic meets market panic And then came 2020. The COVID-19 pandemic was unlike anything modern markets had experienced, a global health emergency that halted economies, froze travel, shut down businesses, and forced billions into lockdowns. Uncertainty reached record highs. Economies contracted. Global trade slowed. And investors reacted with fear. The 2020 stock market crash lasted from 20th Feb to 7th April 2020; in that time frame, the broader Nifty 50 fell 27.22%. It was one of the sharpest crashes in over a decade. But what followed was equally astonishing. With coordinated fiscal support, interest rate cuts, and liquidity measures, markets began rebounding. In just seven months, the Nifty 50 gave returns of 6.44% and around 24% within one year. COVID reminded us how brutal the short-term can be, and how powerful recovery can be when you're invested long enough to see it through. What does the long-term picture really show? All three events, demonetisation, the NBFC liquidity crisis, and the COVID-19 crash, brought sharp reactions. You can witness the real impact when you zoom out and look at the numbers over 5, 10, or 15 years. Despite three major disruptions and several smaller ones in between, investors who stayed invested have seen double-digit compounding over long periods. This is the kind of performance that builds real wealth, and it happened not because there were no crises, but because investors looked beyond them. The market doesn’t reward perfection. It rewards consistency. What can we learn from this? There are a few simple but powerful lessons hidden in all of this: Markets are resilient: Even when events shake specific sectors or the broader economy, the market tends to recover, often faster than expected. Time smooths out volatility: The longer you stay invested, the less any single event matters. What feels like a major drop on a weekly chart looks like a tiny dip over 15 years. Staying invested matters more than timing: Trying to predict when to enter or exit based on news often leads to poor decisions. Investors who stayed the course during these events were ultimately rewarded. In short, the question isn’t whether crises will happen. They will. Some will be economic. Some political, some global, but if your investment horizon is 10, 15, or 20 years, these are not reasons to panic but reminders to stay disciplined. So next time the market wobbles, ask yourself, Am I investing for the next few months or the next 15 years? Because in the end, it's not about catching the perfect moment. It's about not giving up when it feels hardest to stay in. Prasad Iyer [Certified Financial Planner - CFP CM]
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What are Alternative Investment Funds (AIFs)?
Why they’re gaining attention among India’s affluent investors. Who are they meant for? What Are AIFs and How Are They Classified? Structured as privately pooled investment vehicles Broad classification under three SEBI categories: Category I: Startups, infrastructure, impact investing Category II: Private equity, debt, distressed assets Category III: Hedge funds, long-short strategies, trading-focused Data idea: Include a chart or stat of the rise in the Indian AIF market. How AIFs Differ from Mutual Funds and PMS Include a comparison table to highlight: Investment ticket size Liquidity Strategy flexibility Risk levels Fee structure Key Features of AIFs Fund Structure High minimum investment: ₹1 crore (₹25L for employees/directors) Access to niche or high-return strategies not available in MFs Less regulated in terms of investment restrictions vs MFs Benefits of AIFs Exposure to high-growth private companies or special situations Diversification away from listed equity and fixed income Professional management and bespoke strategies Potential for higher, uncorrelated returns Risks and Things to Watch Out For Illiquidity: Long lock-in, early exit not always allowed High fees: Management + performance fees (often 2% + 20%) Manager risk: Fund success heavily dependent on expertise Lack of real-time transparency Regulatory risks (esp. in Cat III strategies) Taxation of AIFs Cat I & II: Pass-through structure, taxed in hands of investor Cat III: Taxed at fund level as business income or capital gains Complexity depends on underlying asset class & fund structure Is an AIF Right for You? ✅ Quick Checklist Before You Invest I already have a diversified investment portfolio of more than ₹5 crore and want to diversify. I’m comfortable locking in capital for 3–5+ years. I understand the strategy or have an advisor guiding me. I’m okay with lower liquidity and higher costs. I’ve done due diligence on the fund manager/team. I’m not chasing returns blindly — I know the risks. Trends and What Lies Ahead Surge in tech-focused, ESG, and private credit AIFs Family offices, NRIs, and UHNIs showing growing appetite SEBI’s evolving regulations on transparency, valuations, and reporting. Data idea: News based on these updates Final Thoughts AIFs are powerful tools — but not for everyone. Fit them into your satellite portfolio, not the core a good advisor can help you sift through noise and choose wisely. Source:https://cafemutual.com/news/cafe-alt/34142-what-could-revolutionize-the-aif-space-in-india Prasad Iyer [Certified Financial Planner - CFP CM]
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Chasing Trends or Building Wealth
“The four most dangerous words in investing are: ‘This time it’s different.’"-Sir John TempletonThis quote perfectly fits here, as investors often get carried away by new market trends, believing that past risks may not apply to current opportunities. Sectoral and thematic funds have gained immense popularity in recent years. With asset management companies (AMCs) launching a growing number of these funds and investors eagerly subscribing to them, they have become a significant segment of the mutual fund industry. But are they the right fit for every investor?These funds focus on specific industries, trends, or themes, such as technology, healthcare, infrastructure, or ESG (Environmental, Social, and Governance), aiming to capitalize on sectoral growth. While the potential for high returns attracts many, the associated risks cannot be overlooked. The crucial question remains: Should investors incorporate sectoral and thematic funds into their portfolios, and if so, how? The Surge in Sectoral and Thematic Funds In the past decade, the number of sectoral and thematic funds has surged. As per the AMFI’s data, the Assets Under Management (AUM) in these funds have significantly increased.This surge in AUM is also on the back of mutual fund houses launching sectoral and thematic funds and the aggressive marketing that follows the New Fund Offer (NFO) of the fund. The NFO is the period when a new fund is open for an initial subscription before it reopens for further subscription.Investors are also flocking to these funds. We can see that the segment received a net inflows of Rs 9,016.60 in January 2025 up from the Rs 4,804.69 crore inflows in January 2024. It was the highest inflows in the equity segment.The inflows to large cap funds and flexi cap funds stood at Rs. 4,122.95 crores and Rs. 5,697.58 crores respectively. The chart compares net inflows across Large Cap, Sectoral/Thematic, and Flexi Cap funds for January 2024 and January 2025, highlighting shifting investment trends.Given their potential for outperforming broad-based diversified funds during sectoral upcycles, investors find them appealing. However, the key question is whether these funds are sustainable long-term investments or merely a reaction to market fads. Why the Craze? Several factors drive the popularity of sectoral and thematic funds:Aggressive Fund Launches and Marketing – Fund houses continuously introduce new schemes, emphasizing high past returns and favourable prospects. Sales teams aggressively push these funds, highlighting short-term sectoral momentum.Investor Behaviour – Many investors chase performance, seeking the next big opportunity. Thematic investing plays into this behaviour, making it an attractive choice for those looking for high returns.FOMO (Fear of Missing Out) – Investors worry about missing lucrative opportunities, especially when they see certain sectors outperforming.However, the behavioural biases that make these funds appealing also increase the risk of misjudgement. Jumping into sectoral funds at the peak of a market cycle can lead to disappointing results. Sectoral and Thematic Funds vs. Diversified Funds Understanding the fundamental differences between these fund types is crucial.Investment FocusSectoral/Thematic Funds: Concentrate on a particular industry or theme (e.g., banking, technology, or ESG trends).Diversified Funds: Spread investments across multiple sectors, reducing risk and ensuring stability.Risk and VolatilitySectoral/thematic funds carry higher risks due to their concentrated nature. Poor timing or a downturn in the chosen sector can significantly impact returns.Diversified funds, on the other hand, minimize risk through exposure to multiple industries, providing more consistent performance over time.Market Timing MattersSectoral and thematic funds can yield excellent returns if investors enter at the right time and exit before the cycle turns unfavourable. However, timing the market is difficult, even for experienced investors. Portfolio Role: Where Do They Fit? Given their high-risk, high-reward nature, sectoral and thematic funds should play a specific role in a portfolio:They should form part of the satellite portfolio rather than the core portfolio.The core portfolio should consist of diversified equity funds, index funds, or asset allocation funds that provide long-term stability.Investors should allocate only a small portion (typically 10-15%) of their portfolio to these funds to enhance potential gains without overexposing themselves to risk. What Should Investors Do? If you are considering sectoral and thematic funds, follow these essential guidelines:Prioritize Asset Allocation – Before investing, ensure your core portfolio is well-structured with diversified equity funds and a balanced asset allocation strategy.Limit Exposure – Do not allocate more than 10-15% of your total investments to sectoral/thematic funds.Invest in What You Know – Investors should consider funds in sectors where they have expertise. For example, IT professionals may have an advantage in investing IT sector funds.Avoid Chasing Trends – Resist the temptation to invest in funds based solely on past performance. Focus on long-term sectoral fundamentals instead of short-term hype.Have an Exit Strategy – Since sectoral cycles can be volatile, define an exit strategy to lock in profits and reallocate funds when necessary. Conclusion Sectoral and thematic funds can be valuable additions to an investor’s portfolio but must be approached with caution. While they offer significant upside potential, they also carry substantial risks. Investors must ensure that their core portfolio remains diversified and that any allocation to these funds is limited and strategically planned.The key takeaway? These funds can be rewarding, but they are not for everyone. Success with sectoral and thematic investing requires careful selection, disciplined allocation, and an informed approach to market trends. If used wisely, they can enhance returns without jeopardizing overall portfolio stability.Prasad Iyer[Certified Financial Planner - CFP CM]
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The Importance of Asset Allocation During Market Correction
Markets were down in the last few weeks, and many new investors saw their portfolios in red for the first time. While the fall in the market is a part and parcel of investing, asset allocation can help you to manage the risk in your portfolio and optimise the returns. Even the most experienced and knowledgeable investors can suffer from a corrective move in the market for it induces panic and causes them to make decisions that are against long-term investment goals. During such instances, asset allocation might be the answer. Asset Allocation is an investment strategy where investors invest in different asset classes that are not directly correlated with each other. This article discusses the nature of asset allocation, its usefulness when there is a market correction and strategies that can be implemented, enabling one to build stronger financial muscles. You will see for yourself that by the end of the article, asset allocation is the most important pillar of a well-structured investment strategy. What is asset allocation? Asset allocation is the process of spreading investments over various classes of assets such as stocks, bonds, real estate and commodities, to achieve a certain given level of risk that is acceptable to the investor. This strategy is based on the idea that different classes of assets behave differently with changes in the market and therefore, it is almost impossible for one downturn to adversely affect the performance of a portfolio as a whole. For example, while equities may suffer losses during a corrective move of the market, debt investments such as debt mutual funds or even gold might cushion the blow. Why does asset allocation matter during market corrections? Having a diverse portfolio helps protect you in times of turbulence: 1) Mitigating volatility: Market corrections induce a high degree of uncertainty. Equities can crash hard, but their decline might be cushioned by the positive behaviour of the other asset classes such as bonds or commodities. A diversified portfolio reduces overall volatility, providing smoother returns and protection of capital during rough waters. 2) Capital preservation: For investors nearing certain financial milestones, such as retirement or buying a big-ticket item, capital preservation is critical. During corrections, you can save your financial goals from market swings by placing investments into stable asset classes like debt instruments or cash equivalents. 3) Taking advantage of an opportunity: Usually, a correction opens up secret doors: many stocks fall below their fair value. An optimally allocated portfolio reserve with sufficient liquidity or enough exposure to defensive assets allows you to take advantage of that opportunity without forcing you to significantly overextend yourself into risk territory. Strategies for effective asset allocation A systematic approach can simplify complex market dynamics. 1) Assess your risk tolerance Risk tolerance, the capacity to endure market fluctuations, is age, wealth, and investment purpose-dependent. Younger investors with time on their side may choose equities for capital appreciation, while older investors near retirement may prefer bonds or other conservative investments. 2) Adopt a multi-asset approach A mix of different asset classes tends to pursue portfolio diversification Equities -A long-term growth driver. Debt - Safety, an offering of steady income and low risk. Commodities - Protection against inflation and volatility. 3) Adjust based on economic cycles Economic conditions significantly affect the performance of your assets. Equities are likely to shine during bull phases. Bonds and gold serve as safety nets when the market is down. Going forward, ensure that you are revisiting your allocation strategy periodically to make sure that it is in harmony with current market conditions. 4) Rebalance regularly. With time, the market's price movement may distort your original allocation. The rebalancing process ensures that you return to your target asset allocation. This makes sure that the risk that you are taking is in line with your risk tolerance. Conclusion The process of establishing a portfolio based on several classes of assets, balanced and rebalanced over time, will minimize risk, preserve capital, and extract appropriate advantages from market possibilities. In a period of economic instability and fast-moving markets, a sound asset allocation strategy cannot and should not go unseen. Start now to build a portfolio that will survive a market correction and guide you toward long-term development. Prasad Iyer [Certified Financial Planner - CFP CM]
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Here is What Our Clients Have to Say
Rohan Krishnan
I’ve been a client with Kyron Finserv for 4 months and it’s been an excellent experience. Their onboarding process is seamless, and they maintain transparency throughout. They’re always prompt in addressing my queries, and Prasad’s expertise shines through in portfolio discussions. Their focus on goal-oriented growth, not blind returns, aligns perfectly with my financial plans.
Rohan Krishnan
I’ve been a client with Kyron Finserv for 4 months and it’s been an excellent experience. Their onboarding process is seamless, and they maintain transparency throughout. They’re always prompt in addressing my queries, and Prasad’s expertise shines through in portfolio discussions. Their focus on goal-oriented growth, not blind returns, aligns perfectly with my financial plans.
Abhishek Garg
I met Prasad (Kyron Finserv), via a common friend, who highly recommended him. I was not into investments, but after talking to Prasad, I am truly grateful for his expertise and guidance in planning my long-term investments. His deep understanding of market trends and personalized approach helped me feel confident in my financial decisions, he took the time to explain complex concepts clearly and tailored the plans to align with my goals, which has made all the difference. I truly appreciate his professionalism, attention to detail, and commitment to my success. Thank you for your professionalism and support—I look forward to continuing this successful partnership!!
Abhishek Garg
I met Prasad (Kyron Finserv), via a common friend, who highly recommended him. I was not into investments, but after taking to Prasad, I am truly grateful for his expertise and guidance in planning my long-term investments. His deep understanding of market trends and personalized approach helped me feel confident in my financial decisions, he took the time to explain complex concepts clearly and tailored the plans to align with my goals, which has made all the difference. I truly appreciate his professionalism, attention to detail, and commitment to my success. Thank you for your professionalism and support—I look forward to continuing this successful partnership!!
Priyanka Nemade
Having advice from Kyron Finserv and working with Prasad for my personal finance and tax planning has given me an extensive and deep understanding at how I must plan my finances. His approach is detailed in expenses, earnings and subsequent future planning. One begins to think on those lines and has a huge impact on our financial goals. Factoring personal goals, inflation and pension pool saving and investment becomes a fuss free job! His guidance is not like someone who put you on diet for cutting corners.. His approach is systematic and goal oriented. Like for women who work today, having a financial advisor and long term investment planner is paramount and Kyron just fulfills that in every way!
Priyanka Nemade
Having advice from Kyron Finserv and working with Prasad for my personal finance and tax planning has given me an extensive and deep understanding at how I must plan my finances. His approach is detailed in expenses, earnings and subsequent future planning. One begins to think on those lines and has a huge impact on our financial goals. Factoring personal goals, inflation and pension pool saving and investment becomes a fuss free job! His guidance is not like someone who put you on diet for cutting corners.. His approach is systematic and goal oriented. Like for women who work today, having a financial advisor and long term investment planner is paramount and Kyron just fulfills that in every way!
Kiran Naik
I got in touch with Kyron Finserv last year and it has been a fantastic experience till now. Prasad and team spent a good time with us initially, to understand the goals and expenses in detail and then suggested the best suitable plan. In today’s world of information overload and continuous monitoring, it’s easy to get misguided for short team gains. On this aspect especially, I found Prasad very grounded and focused on my particular goals, which has in turn kept me unperturbed by the day to day happenings in the market. Wishing Kyron Finserv all the very best and looking forward towards a long partnership.
Kiran Naik
I got in touch with Kyron Finserv last year and it has been a fantastic experience till now. Prasad and team spent a good time with us initially, to understand the goals and expenses in detail and then suggested the best suitable plan. In today’s world of information overload and continuous monitoring, it’s easy to get misguided for short team gains. On this aspect especially, I found Prasad very grounded and focused on my particular goals, which has in turn kept me unperturbed by the day to day happenings in the market. Wishing Kyron Finserv all the very best and looking forward towards a long partnership.
Imran Mohammed
My experience with KyRon Finserv for my financial planning has been very good. Prasad was very thorough in gathering all the required information necessary for financial planning. After that the plan was prepared and explained to us and then all the agreed plan items were executed in a very seamless and professional manner. I feel very confident of reaching my financial goals.
Imran Mohammed
My experience with KyRon Finserv for my financial planning has been very good. Prasad was very thorough in gathering all the required information necessary for financial planning. After that the plan was prepared and explained to us and then all the agreed plan items were executed in a very seamless and professional manner. I feel very confident of reaching my financial goals.
Keshav Maheshwari (SAP Lead – Rayven IT Solutions)
Palak Khemani (CA – Audit Manager – Deloitte Consulting US)
Hyderabad, India
KyRon Finserv has been very helpful in our financial goals mapping particularly future needs of our son’s higher education and our own retirement planning. As we stepped in to parenthood it was critical to assess these needs and have a roadmap in place to achieve the milestones. Their personalised approach to mutual fund investments has given us the confidence and instilled a discipline which should help us in the long run. Wishing them the best and would recommend their services for planning your financial well-being.
Keshav Maheshwari
Palak Khemani
KyRon Finserv has been very helpful in our financial goals mapping particularly future needs of our son’s higher education and our own retirement planning. As we stepped in to parenthood it was critical to assess these needs and have a roadmap in place to achieve the milestones. Their personalised approach to mutual fund investments has given us the confidence and instilled a discipline which should help us in the long run. Wishing them the best and would recommend their services for planning your financial well-being.
Harsha Nair
The advice given by Prasad and team has really helped me understand the importance of financial planning and money growth. I found the advice reliable and looking forward to many more years of growth together !
Harsha Nair
The advice given by Prasad and team has really helped me understand the importance of financial planning and money growth. I found the advice reliable and looking forward to many more years of growth together !
Dipen Gada
The man behind KyRon Finserv is a very dynamic person and has influenced me in many ways. From the time when Prasad became my financial advisor, things around have changed in terms of my financial stability and thought process. setting goals and planning long term investments. I had never given it much importance earlier but have positively changed with help of Prasad and his team.. Thank you and all the best to the entire team.
Dipen Gada
The man behind KyRon Finserv is a very dynamic person and has influenced me in many ways. From the time when Prasad became my financial advisor, things around have changed in terms of my financial stability and thought process.. setting goals and planning long term investments. I had never given it much importance earlier but have positively changed with help of Prasad and his team.. Thank you and all the best to the entire team.
IRFAN (New Zealand Trade and Enterprise – Mumbai)
SONALI (Tata Consultancy Services)
Most people aspire to be financially planned and savvy, but in reality, don’t know how to start and hence find it very daunting, to begin with. What is unique about Prasad is, that he makes the process very comfortable for you. In addition to his deep integrity and financial acumen, he is a very patient listener and communicates with empathy. He simplifies your financial planning process irrespective of where you are on that journey. We have begun ours, thanks to Prasad and his team at Kyron. We wish Kyron Finserv all the best, and are very happy to recommend them to start your financial planning journey today.
IRFAN
SONALI
Most people aspire to be financially planned and savvy, but in reality, don’t know how to start and hence find it very daunting, to begin with. What is unique about Prasad is, that he makes the process very comfortable for you. In addition to his deep integrity and financial acumen, he is a very patient listener and communicates with empathy. He simplifies your financial planning process irrespective of where you are on that journey. We have begun ours, thanks to Prasad and his team at Kyron. We wish Kyron Finserv all the best, and are very happy to recommend them to start your financial planning journey today.
Harish Wani – Director – LTMindtree (Mumbai)
Savita Wani – Director – Accenture (Mumbai)
KyRon Finserv has provided me with end to end solution for all my financial planning and execution needs. Their well-structured and personalized financial planning report helped me understand the investments required for my children’s education, marriage, and other financial goals along with the most critical – post-retirement needs. Being new to mutual funds, having a guided approach has been very helpful and I am a lot more assured and confident of achieving all my financial goals. Thanks to the team and Prasad.
Harish Wani
Savita Wani
KyRon Finserv has provided me with end to end solution for all my financial planning and execution needs. Their well-structured and personalized financial planning report helped me understand the investments required for my children’s education, marriage, and other financial goals along with the most critical – post-retirement needs. Being new to mutual funds, having a guided approach has been very helpful and I am a lot more assured and confident of achieving all my financial goals. Thanks to the team and Prasad.
Latika Nigade
As you sow, so shall you reap” something all of us live by, but how much to sow so as to reap enough to live carefree during retirement is best explained and guided by Prasad and team. Thank you Prasad for your professionallism, patience and trustworthiness to make sure the financial goals for me and my family are met. I sleep so much better knowing this complicated bit of my life is in your safe hands.
Latika Nigade
As you sow, so shall you reap” something all of us live by, but how much to sow so as to reap enough to live carefree during retirement is best explained and guided by Prasad and team. Thank you Prasad for your professionallism, patience and trustworthiness to make sure the financial goals for me and my family are met. I sleep so much better knowing this complicated bit of my life is in your safe hands.
Ritu Khabia
Prasad@kyronfinserv helped me rebalance my mutual fund portfolio as per my life stage and fund requirements. Earlier my approach to investing was random and chaotic. I used to invest in any mutual fund that struck my fancy whenever I had some money lying around. Prasad has streamlined all my mutual fund holdings. I am now assured of optimum returns and minimum stress. Thanks a lot for giving me financial peace of mind, finally!!
Ritu Khabia
Prasad@kyronfinserv helped me rebalance my mutual fund portfolio as per my life stage and fund requirements. Earlier my approach to investing was random and chaotic. I used to invest in any mutual fund that struck my fancy whenever I had some money lying around. Prasad has streamlined all my mutual fund holdings. I am now assured of optimum returns and minimum stress. Thanks a lot for giving me financial peace of mind, finally!!
Sandeep N.
Thanks to KyRon Finserv I know my financial health and goals much better than ever before. They have helped me with a structured plan and approach to achieving each of my financial goals. This has given me peace of mind and confidence in being on the right track of my financial well being.
Sandeep N.
Thanks to KyRon Finserv I know my financial health and goals much better than ever before. They have helped me with a structured plan and approach to achieving each of my financial goals. This has given me peace of mind and confidence in being on the right track of my financial well being.
Narendra G
Prasad and his tax expert team provided me with quick guidance and closure on a tax filing requirement in India. Being in the US and able to rely on them for all my tax compliance needs has been a very stress-relieving experience, thanks to their professionalism.
Narendra G
Prasad and his tax expert team provided me with quick guidance and closure on a tax filing requirement in India. Being in the US and able to rely on them for all my tax compliance needs has been a very stress-relieving experience, thanks to their professionalism.
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