Case Study 01 · Asset Allocation

Increasing Mutual Fund & Equity Allocation to 60%

How a better-balanced portfolio could improve the long-term growth potential of wealth that had already been created.

₹7.33 CrTotal portfolio value

₹63.13 LakhInvested in Mutual Funds & Equity

~8.6%Growth-oriented allocation, the core concern

The Problem

The client had a total portfolio of approximately ₹7.33 Crore, but only ₹63.13 Lakh (~8.6%) was allocated to Mutual Funds and Equity.

A major portion of the wealth was concentrated in property and other assets, limiting the portfolio's overall long-term growth potential.

The Analysis

We reviewed the client's existing asset allocation, long-term financial goals, liquidity needs and risk capacity.

Current allocation

Other Assets 91.4%

MF + Equity: ~8.6%Other Assets: ~91.4%

Illustrative assumptions

12%p.a. return on MF + Equity

7%p.a. return on other assets

10 yrsInvestment horizon

NoneAdditional investment or withdrawal

Current allocation (~8.6% MF + Equity)≈ ₹15.01 Cr

With 60% MF + Equity allocation≈ ₹19.01 Cr

~₹4 Crore Potential illustrative difference in portfolio value over 10 years, from allocation alone.

The Solution

We proposed gradually increasing the client's growth-oriented allocation toward 60% in Mutual Funds and Equity over the next 10 years, while maintaining sufficient allocation to other assets for diversification, liquidity and stability.

Target at current value~₹4.40 Cr60% growth allocation of the ₹7.33 Cr portfolio

Gradual shift required~₹3.77 CrIncrease in MF + Equity allocation over time

ApproachPhasedSubject to changing goals, market conditions and risk profile

The Conclusion

The strategy demonstrates how effective asset allocation can significantly influence long-term wealth creation.

“The objective is not simply to accumulate more assets, but to improve the growth potential of the wealth already created.”

By gradually moving from a predominantly asset-preservation portfolio toward a more balanced growth-oriented portfolio, the client can aim for stronger long-term wealth creation while maintaining appropriate diversification.

Disclaimer: The figures shown are mathematical illustrations based on assumed returns and are not guaranteed or expected returns. Mutual Fund and Equity investments are subject to market risks, and actual returns may vary.