BullsEye India Podcast

Let every man divide his money into three parts, invest a third in land, a third in business and a third let him keep in reserve.------- Talmud ( c 1200BC—AD 500 ) The idea of asset allocation was very much present even 2000 years ago. In other way we can say that the concept of risk management was also familiar at that time. In modern times the concept of portfolio and risk management got a new dimension with the introduction of Modern Portfolio Theory ( MPT ) by Harry Markowitz. According to modern portfolio theory it is not enough to invest in different type of asset to reduce risk. Investor should also know whether there is any relationship among the invested asset class return. The nature and strength of the relationship among the invested asset class is the most critical issue in asset allocation. The focus on investment policy and asset allocation is transforming investment management. Listen the podcast to know more...