The asset advisory service functions as a malleable structure, offering you the flexibility to take care of short term opportunities. Through a comprehensive investment process with a strategic plan in place, it makes room for tactical allocations to make the most of short term opportunities.
The concept of tactical allocation is to counteract the rigidity of a long term strategic asset allocation strategy. The necessity for tactical allocation arises to enable:
The investment philosophy for tactical asset allocation is based in the belief that over time, changes in your psychology as an investor and dynamism in market forces can lead to possible temporary changes in investment recommendations. Although markets do not always offer such arbitrage, but the time over which wealth is invested strategically lengthy, and so there maybe periods of misevaluation that can be leveraged using the tactical allocation process.
The objective of tactical asset allocation is to move among various asset classes within a risk-controlled framework to seek an additional source of return. This is done in an attempt to take advantage of short and intermediate term market inefficiencies. By doing this, the firm is capable of managing your exposure to market risk.
Various investment firms follow a strategic asset allocation process. For instance, Kotak arrives at your strategic asset allocation strategy in the following manner:
Kotak offers Asset Advisory Services. Contact us to know more.
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