Strategic and tactical asset

allocation techniqueused by fund

manager
Summer training under –

LIC MUTUAL FUND

Objective-
To know how to make a good
portfolio
 LIC MUTUAL FUND

• 20 th april 1989 established

• Joint venture partner
1) LIC of india (49)
2) LIC housing finance LTD (35)
3) GIC housing finance ltd. (16)
 Strategic asset allocation

• Strategic asset allocation is a target

allocation of asset classes you expect to
have in place for a long period of time

• Balance sheet. , P/L a/c can be seen

 Tactical asset allocation

• Active management portfolio strategy

• To shift the percentage of aseet held
• To take advantage of market pricing
anomalies or strong market sector
 Which strategy is better ?

• Strategic asset allocation is best for long

term
• Tactical asset allocation is good for short
term
• Tactical asset allocation is driven by
market event
• Strategic asset allocation is driven by
financial status of a company
 6 factor to consider in your asset
allocation
• Investment horizon
• Risk tolerance
• Diversification
• Costs/expenses
• Rebalancing
• Guidance
 Some lic mutual fund scheme

• Lic mf large cap fund

• Lic mf multicap fund
• Lic mf large and mid cap fund
• Lic mf tax plan
• Lic mf index fund sensex fund
• Lic mf infrastruture fund
• Lic mf liquid fund
 Portfolio made in summer training

• I have selected some 40 companies in my

portfolio from different sector which are
listed in bse/nse
• My portfolio had given 9.65 % return .